Total Cost of Ownership (TCO): AWS EC2 vs SaaS Platforms

May 25, 2026 · 6 min read · By Talha Arshad

For my ICT171 assignment, I compared the financial and technical trade‑offs between running a self‑managed cloud server (IaaS) and using an all‑in‑one website builder (SaaS). The goal was to choose the best solution for hosting a personal blog.

What is TCO?

TCO includes not only the initial purchase price but also long‑term costs such as maintenance, electricity, upgrades, and labour. For cloud services, it also factors in scalability, control, and learning value.

IaaS: AWS EC2 (my solution)

With EC2, I pay nothing for the first 12 months (free tier: t3.micro, 30GB EBS). After that, estimated cost is ~$5‑$10 per month. However, I must manually update the OS, secure the server, and troubleshoot any issues. The learning value is enormous – I now understand Linux, Nginx, SSL, cron, and bash scripting.

SaaS: Wix / Squarespace

These platforms charge around $15‑$30 per month. They handle hosting, security, and backups automatically. You get drag‑and‑drop design and customer support. But you cannot SSH into a server, install custom software, or learn system administration. The monthly subscription never ends.

Direct Comparison Table

FactorAWS EC2 (IaaS)Wix/Squarespace (SaaS)
Initial cost$0 (free tier)$0 (trial) / then monthly
Monthly cost (after free tier)$5–10$15–30
MaintenanceManual (updates, security)Automatic
ControlFull root accessRestricted to platform features
Learning valueHigh – real cloud skillsLow – drag and drop
Long‑term cost (5 years)$300–600$900–1800

My Verdict

For this assignment, AWS EC2 was the clear winner. The assignment explicitly required manual configuration, infrastructure as a service, and scripting – impossible with SaaS. For a non‑technical person who just wants a blog, SaaS would be easier. But for a cloud computing student, IaaS is the only correct choice.

I learned more in one month of managing my own server than I ever would from a website builder. That experience is worth more than the nominal cost difference.