Discounts in the Cloud from Amazon
March 11, 2012
Orchard Street discounts arrive in the cloud.
We say Amazon is both exploiting Microsoft Azure weaknesses and responding to customer complaints; ZDNet reports, “Amazon drops cloud prices worldwide (again).” Exactly where reductions will be seen depend on region and type of cloudy instance. Clients using Elastic Compute Cloud, Elastic Map Reduce, its relational database service RDS, and ElastiCache benefitted right away.
The attention gives Amazon a chance to highlight its usability by companies great and small. The write up notes:
Despite the company namedropping Foursquare and Samsung as its two prime examples of the model customer, it goes to show that Amazon’s cloud services are not just for the startup, the avid developer, and the bank on the corner. Big names use it, and rely on it, and Amazon is keen to stress how valuable its service is compared to its Microsoft competitor.
Reducing cloud prices has become a habit for Amazon; this is the nineteenth time in six years. At least they’re flexible. All this cutting keeps pressure on primary competitor Microsoft. We think it also has to do with appeasing unhappy customers. We understand, though, why the company wouldn’t emphasize that detail.
One outcome of Amazon’s price cutting is that its margins may come under increased pressure. Amazon is going for the throat in a number of business sectors. The problem is that the tactics can be expensive. Maybe Amazon can make up the costs with volume?
Stephen E Arnold, March 11, 2012
Sponsored by Pandia.com
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