Feeds

In your face, rivals: Amazon cuts cloudy prices

Where have we seen this aggressive pricing tactic before?

Boost IT visibility and business value

Amazon has once more cut the cost of its cloudy offerings to smack down its competition and continue on its path to fluffy domination.

A post from Amazon Web Services (AWS) "evangelist" Jeff Barr on the AWS blog claimed that Amazon had managed to lower its costs and would be passing on those savings to its customers.

Exactly how much all the lucky clients will save will require some calculations on their part, as it is dependent on what kind of cloud usage they have and what region they're in, but the headline figures from Barr have Reserved Instance prices dropping up to 37 per cent and On-Demand Instances falling up to 10 per cent.

Amazon was keen to emphasise that AWS clouds are not just for small companies; it'll now be enticing the big boys with offers on scale.

Purchasing over $250,000 worth of Reserved Instances – the service for when you know how much cloud you'll be slurping in the next while – will bag the higher-usage firms a 10 per cent discount on any additional instances it wants to snap up. Go up to $2m and the discount rises to 20 per cent, while firms that go over $5m worth should "give Amazon a call".

Giving the typical tech company we're-just-in-business-to-help-people line, Barr said that Amazon would keep working to lower costs so it could give customers lower prices.

"Some companies work hard to lower their costs so they can pocket more margin. That’s a strategy that a lot of the traditional technology companies have employed for years, and it’s a reasonable business model. It’s just not ours," he gushed.

"We want customers of all sizes, from start-ups to enterprises to government agencies, to be able to use AWS to lower their technology infrastructure costs and focus their scarce engineering resources on work that actually differentiates their businesses and moves their missions forward."

Of course, this newest price drop might be nice for customers, but it's definitely not too nice for Amazon's competitors. The web giant seems to be following the same route with its cloud offerings as it first did with books – in an attempt to aggressively price out its rivals. ®

The essential guide to IT transformation

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Object storage bods Exablox: RAID is dead, baby. RAID is dead
Bring your own disks to its object appliances
Nimble's latest mutants GORGE themselves on unlucky forerunners
Crossing Sandy Bridges without stopping for breath
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.