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My sendy is very slow on sending emails right now. I checked that is consuming 100% of the simplest instance on amazon .Do I really need a bigger instance? What is recommended?
From my understanding, you have a daily quota of 1,000,000 and your sending speed is 90 emails per second.
With this kind of huge quota, you need to scale up your instance.
The micro instance only have 613MB of memory (not even 1 GB). And it is handling more than it can.
When you send your emails, Sendy uses multi-threading according to your SES send rate, in your case, it is 90 emails per second.
Your server is processing 90 emails at once in every iteration on an under-powered machine.
There's a reason why websites crashes when they hit the front page of reddit, digg, hacker news etc. Because their server isn't able to handle that much traffic concurrently and repeatedly. When you send bulk newsletters, it's worse. Your server is working to process 90 jobs concurrently in every iteration without rest. If you do this on a low capacity server, you're going to have problems.
Scale up your instance.
Scale up to what? What do you recommend?
You can always scale up and down easily - experiment until you find the instance that's most satisfactory to you.