Amazon cuts EC2 pricing again; maintains compete strategy with Microsoft, Google

Amazon cuts EC2 pricing again; maintains compete strategy with Microsoft, Google

Summary: The retail turned cloud giant has once again lowered its enterprise cloud pricing for the 26th time in a bid to continue its aggressive compete strategy against rival cloud firms.

TOPICS: Amazon, Cloud

Amazon has dropped its EC2 cloud computing services prices for the 26th time, as the cloud giant continues to pass on the savings from its ever-growing expansion back to its customers. 

The company announced discounts of more than one-quarter for EC2 reserved instances running Linux/Unix, Red Hat Enterprise Linux, and SUSE Linux Enterprise Server, by as much as 27 percent. These apply to M1, M2, M3 and C1 instance families.

The price reduction of reserved instances will provide savings of up to 65 percent, compared to on-demand instances, the company said in a blog post

As Amazon's cloud platform increases in size and scale, the firm's margins are gradually reduced over time. The savings are then passed onto the customers who, in an age of outsourced cloud services and an increasingly number of available platforms—not limited to Google Compute Engine and Microsoft's Azure platform—could up and leave for another platform.

Amazon's Jeff Barr said in the blog post that these prices are reflected on all three reserved instance models—light, medium, and heavy utilization—on purchases made on or after March 5, being today. 

In guidance, the cloud giant said those running servers less than 15 percent of the time should stick with on-demand instances; those between 15-40 percent should opt for light utilization; between 40-80 percent for medium utilization, and anything higher should be for heavy utilization.

Here's the breakdown of the price reductions across each instance:

Screen Shot 2013-03-05 at 10.46.38
(Credit: Amazon Web Services)

The last price cut was in February when it lowered the on-demand pricing for EC2 instances by on average 10-20 percent. 

Last week, Amazon dropped pricing on its notifications and messaging services for its AWS platform. Both Amazon Simple Queue Services (SQS, for messages) and Amazon Simple Notification Service (SNS, for notifications) have become more optimized and prices were dropped to reflect those changes.

Topics: Amazon, Cloud

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  • Probably Ec2 is not selling well

    Azure is the winner here with lot of sales. And what is this "Compute Engine", does anybody use it?
    • Yes yes, they're just so desperate

      I mean, what can you DO with that growing market share and volume something like 3-4x your nearest competitor? It really is time for a hail mary.
  • Great to see that Amazon is lowering its prices ...

    ... to become more competitive with Azure ;)

    Shame they've not decreased their storage costs to do the same. Depending on the architecture and behavior of your cloud systems, hosting and storing data in AWS can cost A LOT more than in Azure.
  • Read between the lines...High-Mem get special treatment

    Did you guys notice something about this price drop? M2 instances (High-Mem) have been dropped a lot more than others; and if you look at savings, M2 is higher than all the other instance types. I recon AWS have over provisioned M2 types and are trying to get some money from them.

    I saw the analysis about this price drop here: