Amazon Web Services enacts 'significant' price cut

Reserved Instances of EC2 will cost up to 42 percent less

Amazon Web Services has cut its prices for the 19th time in six years in a bid to fend off competition from the likes of Microsoft Azure and Rackspace.

"AWS works hard to lower our costs so that we can pass those savings back to our customers," the company said in a blog post late Monday. "We look to reduce hardware costs, improve operational efficiencies, lower power consumption and innovate in many other areas of our business so we can be more efficient."

This has resulted in a "significant price decrease" for Amazon's Elastic Compute Cloud (EC2), Relational Database Service (RDS), ElastiCache and Elastic Map Reduce, the blog added.

While Amazon, like other cloud infrastructure service providers, allows users to purchase computing power by the hour, it also offers Reserved Instances, where in exchange for paying for a longer fixed term, customers get lower pricing. The new price cuts announced Monday will vary according to geographic region, with costs for EC2 Reserved Instances falling up to 37 percent, according to the blog. On-demand pricing will see a more modest cut of up to 10 percent.

Meanwhile, costs of new reserved Instances of Amazon RDS, which provides a scalable relational database powered by either MySQL or Oracle, will drop up to 42 percent, while on-demand pricing will be lowered by up to 10 percent, according to the blog. AWS has posted a list of all the new prices on its website.

Amazon made a concurrent announcement on Monday aimed at large enterprises.

"One misperception we sometimes hear is that while EC2 is a phenomenal deal for smaller businesses, the cost benefit may diminish for large customers who achieve scale," the blog states. In fact, "those who take the time to rigorously run the numbers see significant cost advantages in using EC2 regardless of the size of their operations."

To this end, AWS is rolling out an option called Reserved Instance volume tiers. "In order to determine what tier you qualify for, you add up all of the upfront Reserved Instance payments for any Reserved Instances that you own," the blog states. If you own more than $250,000 of Reserved Instances, you qualify for a 10% discount on any additional Reserved Instances you buy (that discount applies to both the upfront and the usage prices). If you own more than $2 Million of Reserved Instances, you qualify for a 20% discount on any new Reserved Instances you buy."

Those who spend more than $5 million on Reserved Instances can contact AWS and discuss how prices could be further reduced, according to the blog.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Essentials

Mobile

Exec

Sony WH-1000XM4 Wireless Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?