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AWS (Amazon Web Services) vs Neon

AWS (Amazon Web Services) logo

AWS (Amazon Web Services)

Software

The leading cloud computing platform

From
Free
Rated
-
Full reviewWebsite
Neon logo

Neon

Software

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: AWS (Amazon Web Services) data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills; Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • They diverge on capability: AWS (Amazon Web Services) covers EC2 - Virtual Servers, Neon covers Serverless PostgreSQL.

Where they differ

Only the attributes on which AWS (Amazon Web Services) and Neon actually diverge.

Attributes where AWS (Amazon Web Services) and Neon differ
AttributeAWS (Amazon Web Services)Neon
Pricing modelusage-basedUnknown
PlatformsWeb, Api, Cli, MobileCloud
Founded20062021

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in AWS (Amazon Web Services)

  • EC2 - Virtual Servers
  • S3 - Object Storage
  • RDS - Managed Database
  • Lambda - Serverless Computing
  • CloudFront - CDN
  • VPC - Virtual Network
  • IAM - Access Management
  • CloudWatch - Monitoring

Only in Neon

  • Serverless PostgreSQL
  • Database Branching
  • Autoscaling
  • Bottomless Storage
  • Point-in-time Recovery
  • Connection Pooling
  • Read Replicas
  • Instant Cloning

Both cover

  • SOC2
  • GDPR

What people use each for

The jobs each tool is most often brought in to do.

AWS (Amazon Web Services)

  • Web hostingnot Neon
  • Data storagenot Neon
  • Machine learningnot Neon
  • Big data analyticsnot Neon
  • Application developmentnot Neon

Neon

  • Serverless applicationsnot AWS (Amazon Web Services)
  • Development databasesnot AWS (Amazon Web Services)
  • Preview environmentsnot AWS (Amazon Web Services)
  • Testingnot AWS (Amazon Web Services)

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

AWS (Amazon Web Services)

  • Data transfer in is free and data transfer out is charged, which is the standard source of unexpected bills
  • Discounts require one or three year Savings Plan commitments rather than being automatic
  • Every service is priced separately, so a working architecture has no single published cost
  • The free tier is a promotional allowance rather than an ongoing free plan

Neon

  • Compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • Separation of compute and storage may add complexity to cost prediction compared to all-in-one plans

Pricing, plan by plan

AWS (Amazon Web Services)

Free
  • AWS Free TierFree
    • EC2 750 hours/month
    • 5GB S3 storage
    • 20GB data transfer
  • Pay-As-You-GoFree
    • No upfront payment
    • No long-term commitments
    • Pay only for what you use

Neon

Free
  • FreeFree
    • 100 CU-hours/month
    • 0.5 GB storage
    • 1 project
  • Launch$15/month
    • Pay-as-you-go compute
    • $0.35/GB storage
    • Multiple projects
  • Scale$31/month
    • Higher compute rates
    • 99.95% SLA
    • HIPAA compliance

Which should you pick?

Choose AWS (Amazon Web Services) if

  • You need ec2 - virtual servers.
  • You want to start without paying.
  • You work on Web, Api, Cli, Mobile.
  • You also want s3 - object storage.
AWS (Amazon Web Services) review

Choose Neon if

  • You need serverless postgresql.
  • You want to start without paying.
  • You work on Cloud.
  • You also want database branching.
Neon review

Questions people ask

Is AWS (Amazon Web Services) or Neon better?
Neither clearly leads. AWS (Amazon Web Services) starts at Free and Neon at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, AWS (Amazon Web Services) or Neon?
AWS (Amazon Web Services) starts at Free and Neon at Free.
Does AWS (Amazon Web Services) or Neon run on more platforms?
AWS (Amazon Web Services) runs on Web, Api, Cli, Mobile. Neon runs on Cloud.
Can I use AWS (Amazon Web Services) for free?
Both have a free tier, so you can try either at no cost before committing.
What is AWS (Amazon Web Services) best used for?
AWS (Amazon Web Services) is most often used for web hosting, data storage, machine learning, big data analytics. Of those, web hosting and data storage are not what Neon is typically brought in for.
What can AWS (Amazon Web Services) do that Neon cannot?
AWS (Amazon Web Services) covers EC2 - Virtual Servers, S3 - Object Storage, RDS - Managed Database, Lambda - Serverless Computing. Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Both handle SOC2, GDPR.

Answered from the vendors’ own pages

Neon: What is Neon and what makes it different?

Neon is a serverless PostgreSQL database that separates compute and storage, enabling automatic scaling and instant database branching. After acquisition by Databricks in May 2025, pricing has been significantly reduced.

Source
Neon: Does Neon offer a free tier?

Yes, Neon's free tier includes 100 compute units per month and 0.5 GB of storage. This is suitable for development and small projects.

Source
Neon: What are the paid plans and pricing for Neon?

Neon offers consumption-based pricing on Launch ($0.106/CU-hour, approximately $15/month) and Scale ($0.222/CU-hour, approximately $31/month) plans with separate storage billing at $0.35/GB-month. No monthly minimum required.

Source
Neon: What features does Neon provide?

Neon includes git-like branching for database copies, point-in-time recovery, data anonymization for testing, managed authentication, serverless functions, and object storage that branches with projects.

Source
Neon: What compliance and reliability guarantees does Neon provide?

Neon's Scale tier offers 99.95% uptime SLA, HIPAA compliance, SOC2 certification, and private networking via PrivateLink at no extra cost.

Source
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