In an aggressive response to Google’s cloud computing price-cuts, Amazon is on the same path with substantial price reductions in different cloud services.
GREATRESPONDER.COM – It was not more than 24 hours after the announcement of Google to cut the prices of its cloud computing services, Amazon AWS, responded in the same way to announce substantial price reduction on its all major cloud services. This announcement was made public on Wednesday, March 26, 2014, in response to the price cut announcement of the Google Corporation on its all major cloud computing services.
The company statement further explained about the price cuts that the reduction in the prices would be available for all its major cloud computing services such as – EC2 cloud computing platform, Storage services S3, Elastic MapReduce, ElastiCache, RDS database and others. This reduction in the cost has positioned the Amazon platform to be more competitive in the marketplace for application hosting on the Amazon cloud computing platforms. Earlier than this announcement, the Google was far cheaper in almost all cloud services.
Now, Amazon reduced as much as 40% price for EC2 cloud instances, and similarly the cost of first terabyte storage on Amazon’s S3 would be available at $0.03 on standard storage while the same data will be available at the rate of $0.024 for the reduced redundancy storage. In EC2 services, you can avail running a m3.medium instance for as low as $0.07 per hour, which was available for $0.113 per hour earlier than this price cut.
Meanwhile, the company has also announced a substantial reduction in the RDS data base services, for example, it is about 40% down. ElastiCache node has been reduced by more than 34%, while the Elastic MapReduce will be down in the range of 17% to 61%.
Many analysts and industry experts believe that this fierce competition in the big companies in this domain of cloud computing will leave two pronged impact on the cloud market. At one end, the healthy competition would allow the users to benefit and get the value of the money they spend on purchasing the cloud computing services; on the other hand, it is not a good sign for the startups and smaller cloud service providers, who are already feeling the heat of giant corporations entering into the cloud computing market in recent days.