Feeds

Amazon forms THE VIRTY DOZEN to assassinate rival flash cloud servers

Bezos & Co bets big on solid-state drives, undercuts Rackspace

Combat fraud and increase customer satisfaction

re:Invent 2013 A week after Rackspace launched its own range of flash-stuffed cloud servers, Amazon has come along and, as usual, ruined the market by pushing out a dozen instances that are bigger, faster, and cheaper than what its competitor offers.

The new instances were announced by the web bazaar's chief technology officer Werner Vogels in a keynote speech on Thursday, and sees Jeff Bezos' Virtualization Palace push out 12 new servers at low, low prices.

The virtual machines consist of five "compute-optimized" configurations, two general purpose ones, and five as-yet-unpriced high-bandwidth "i2" instances. Amazon will use solid-state drives across the majority of the new bit-fiddlers as it tries to reduce the variability of its instances and increase performance.

As usual, Amazon's new prices will ripple through the industry and lead to reprisal price cuts by rivals such as Microsoft and Google, but Rackspace's just-launched Performance Servers have already been walloped by the move.

For instance, a Rackspace "Performance 2" server with 30GB of RAM, 300GB of SSD, and 8 vCPUs costs $1.36 an hour, versus Amazon's "C3.4xlarge" instance which has 30GB of RAM, 320GB of SSD, and 16vCPUs for $1.20.

The difference of $.16 may seem minor at first glance, but when you factor in the further cost cuts for AWS from reserved instance pricing or spot markets, these gaps are profound – and will sap Rackspace's business over time.

Further details of the new instance specifications and pricing are available on Amazon's site. In an unusual turn for the internet giant, it is not publishing prices on the new batch of five "i2" instances, which are powered by heavyweight 2.5Ghz Intel Xeon E5-2670v2 processors and feature advanced networking capabilities.

These systems will drive further price changes in the wider cloud market, and likely yield price changes from Google and Microsoft in time. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.