Digital Transformation

Amazon Slashes Pricing for Several Cloud Services

I recently blogged about Google’s Bigger, Cheaper Cloud and now it looks like Amazon has responded. CRN has an article about Amazon’s announcement of 10%-40% cuts for M1, M2, C1 and CC2 instances.  Amazon didn’t make much reference to Google and they have cut prices a number of times although the timing is suspect.

Amazon’s EC2 M3 instances are dropping 38 percent, while C3 instances are being cut by 30 percent. All of these EC2 figures are for instances running Linux, but Jassy said there will be a “comparable decrease” for Windows instances.

Amazon is lowering Simple Storage Service (S3) pricing by an average of 51 percent, with cuts ranging from 35 percent to 65 percent depending on the tier of service, Jassy said.

Other cloud price cuts are coming for Amazon’s Relational Database Service (28 percent on average), ElastiCache (34 percent on average), and Elastic MapReduce, AWS’ Hadoop service (27 percent to 61 percent depending on instance type).

AWS is able to make these price drops through economies of scale, as more people are adopting its cloud to replace or supplement their traditional data centers, Kevin RisonChu, director of systems and infrastructure at Digitaria, a San Diego, Calif.-based AWS partner, told CRN.

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About the Author

Mike Porter leads the Strategic Advisors team for Perficient. He has more than 21 years of experience helping organizations with technology and digital transformation, specifically around solving business problems related to CRM and data.

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