I know huge businesses which spend a fraction of that on hosting. Conversely I've know of small business being overcharged for their needs, in some cases due to the developers producing awful code. Without knowing what you're doing and how you're doing it, I'd still be inclined to say you're being overcharged, purely on the basis of experience.

In reply to Re^3: Google App Engine and CGI by marto
in thread Google App Engine and CGI by *alexandre*

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