Welcome to our new regular series that covers news in the Cloud market. This week we saw further price reductions from Amazon Web Services. Amazon continues to be the price and market leader however we are seeing more announcements from other vendors, IBM in particular. AWS is great for developers and businesses but competes with them at your peril. Paul Ramsey, co-founder of POSTgis has said “Has anyone ever gotten rich competing with Amazon?” I suspect the answer is no!
AWS New Products And Price Reductions
Amazon EC2 M3 instance sizes and features: AWS have introduced two new sizes for M3 instances: m3.medium and m3.large with 1 and 2 vCPUs respectively. AWS have also added SSD-based instance storage and support for instance store-backed AMIs (previously known as S3-backed AMIs) for all M3 instance sizes. M3 instances feature high-frequency Intel Xeon E5-2670 (Sandy Bridge or Ivy Bridge) processors.
When compared to previous generation M1 instances, M3 instances provide higher, more consistent compute performance at a lower price. These new instance sizes are available in all AWS regions, with AWS GovCloud (US) support coming soon. You can launch M3 instances as On-Demand, Reserved or Spot instances. To learn more about M3 instances, please visit the Amazon EC2 Instance Types page.
Amazon S3 storage prices are lowered up to 22%: All Amazon S3 standard storage and Reduced Redundancy Storage (RRS) customers will see a reduction in their storage costs. In the US Standard region, we are lowering S3 standard storage prices up to 22%, with similar price reductions across all other regions. The new lower prices can be found on the Amazon S3 pricing page.
Amazon EBS prices are lowered up to 50%: EBS Standard volume prices are lowered up to 50% for both storage and I/O requests. For example, in the US East region, the price for Standard volumes is now $0.05 per GB-month of provisioned storage and $0.05 per 1 million I/O requests. The new lower prices can be found on the Amazon EBS pricing page.
IBM and SAP have a Tough Road Ahead against Amazon’s Low Margin Cloud. Tech Titans hoping the cloud will save their business (and profits), but it’s more likely to do the opposite.
This is an excellent article from Matt Asay Readwrite Jan 22 2014
Ben Kepes in an Article in Forbes asks Microsoft a question
Yesterday AWS Dropped Prices, Next Move is Your Microsoft. You Promised After All ….