Amazon drops cloud prices, again

By Brandon Butler, Network World |  Cloud Computing, Amazon, Amazon Web Services

Amazon Web Services, fresh off an outage that brought down big-name sites such as Reddit and Imgur, today announced an 18% price reduction for its virtual machines, the 21st time the leading infrastructure as a service (IaaS) vendor has dropped prices since launching its cloud in 2006.

In addition to the price drop, AWS released a new series of Elastic Cloud Compute instances with high input/output (I/O) qualities. They're optimized, AWS says, for media encoding, batch processing, caching and Web serving. The extra-large instance (m3.xlarge) comes with 15GB of memory and 13 ECU -- which are Amazon compute units -- across four virtual cores. A double extra-large instance has 30GB of memory with 26 ECUs on eight virtual cores. The service debuted in the Northern Virginia US-East region, but AWS plans to roll it out to other regions early next year.

MORE CLOUD: 12 free cloud storage options

IMPROVE YOUR SKILLS: 12 effective habits of indispensable IT pros

The new prices are as follows:

" Small instances went from $0.08/hour to $0.065/hour " Medium instances went from $0.16/hour to $0.13/hour " Large instances went from $0.32/hour to $0.26/hour " Extra-large instances went from $0.64/hour to $0.52/hour

Dan Feld, who manages sales and business development at AWS consultancy Newvem and is a former AWS exec with the same role for Amazon in Europe, says the price drop for the small instances is a significant move for a lot of customers. According to a sample of 40,000 instances that Newvem monitors for customers, m1.small is the most popular type, making up more than 25% of instances. All of those customers will have a drop in prices. Along with the price drop, AWS is filling out its product portfolio with higher-end instance types as well, he says.

"Amazon sure doesn't want to make it easy for competitors," says cloud analyst Paul Burns of Neovise about the company's 21st price drop in six years. As processing performance continues to improve, Burns says AWS has taken the approach that it will pass those savings on to customers whenever it can, as opposed to waiting for some major breakthrough in performance or cost.


Originally published on Network World |  Click here to read the original story.
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Cloud ComputingWhite Papers & Webcasts

Webcast On Demand

How Moving Your Contact Center to the Cloud Eliminates Risk

Sponsor: Interactive Intelligence

Webcast On Demand

Building a Hybrid Cloud

Sponsor: Hitachi Data Systems

Webcast On Demand

Healthcare IT: Out of the Basement and into the Cloud

Sponsor: VMware

See more White Papers | Webcasts

Answers - Powered by ITworld

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Ask a Question