Total first year cost on this setup: $8,800
Total three year cost on this setup: $12,400
2x m5d.4xlarge EC2 instances (this isn't counting ingress/egress rates, or really anything else) First year cost: $15,621 .
Total three year cost for the EC2 instance: $46,863.36
For the cost of using EC2 you could hire an extra person to help grow your company.
Yes, you can get discounts in AWS for agreeing to a three year term. Yes AWS offers you flexibility to walk away at any time.
If you have a base line load (which most companies do) you should really look at colocating your owned equipment. You also get the bonus of being out of the watchful eye of Amazon's profitability team looking to see if they can copy what you're doing.