Billy Idol
Legend
As Gradthawn says, a server can be anything. On Amazon's elastic cloud, one EC2 CPU equivalent is basically one 1.6GHz Opteron core. You specify how much you're going to use it: light, medium og heavy load. Only if you state heavy load is the entire core dedicated to you. In the light case they probably oversubsribe the core by a factor of 4-10.
Amazon's new instances are basically equivalent to Core i7 3Ghz cores, with 3.25 times the performance of an EC2 CPU equivalent. That means you can have 13 EC2 equivalent "servers" running on a single quad Core i7 blade/server, oversubscribe this by a factor of 5 and a single physical server is 65 virtual ones. A single 1U HP DL120 with a E3-1240 Xeon and 32GB RAM can do this for less than $2000.
Cheers
Exactly. So 300.000 is up to now just a number. We need more details for sure...