Amazon Web Services’ Price Cuts Fuel Cloud Wars

The price war among cloud storage and compute providers is continuing, with Amazon Web Services announcing a 51 percent average price cut Wednesday on its S3 storage service. The cuts come one day after Google announced its own cuts.

Amazon also said it was making its desktop-as-a-service generally available, which could potentially raise the stakes for Microsoft's OneDrive and Office offerings in the cloud. And the Seattle-based Amazon said it was reducing prices on other services by a range of 28 percent to 61 percent, depending on the service.

The announcements were made at an AWS conference in San Francisco focused on the S3 service. The company also said its U.S.-based offerings had received a new security-level rating issued by the U.S. Department of Defense.

While Google started this latest price war, a new report from RightScale, which helps clients manage their cloud costs, found that Amazon dominated the industry with more than a dozen price reductions in 2013, which helped to push the company into its market leadership position. Cloud storage and compute providers have become a major part of the technology industry.

RightScale's report, updated with Amazon's latest cuts, shows Google still cheaper for on-demand use, but Amazon cheaper for "reserved instance" use, in which a company estimates and pays a subscription price for its predicted usage.

Setting Aside Forecasting

James Staten, principal analyst with industry research firm Forrester, notes in a recent blog post that forecasting is becoming more difficult and is not the optimal model to use. AWS and Microsoft require businesses to predict what their usage will be prior to discounts being applied to the total bill.

"Predictability is going down," Staten said in the blog post. "In the current Age of the Customer you have to change your Systems of Engagement faster, not slower. You have to do more analysis,...

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Amazon Web Services’ Price Cuts Fuel Cloud Wars

The price war among cloud storage and compute providers is continuing, with Amazon Web Services announcing a 51 percent average price cut Wednesday on its S3 storage service. The cuts come one day after Google announced its own cuts.

Amazon also said it was making its desktop-as-a-service generally available, which could potentially raise the stakes for Microsoft's OneDrive and Office offerings in the cloud. And the Seattle-based Amazon said it was reducing prices on other services by a range of 28 percent to 61 percent, depending on the service.

The announcements were made at an AWS conference in San Francisco focused on the S3 service. The company also said its U.S.-based offerings had received a new security-level rating issued by the U.S. Department of Defense.

While Google started this latest price war, a new report from RightScale, which helps clients manage their cloud costs, found that Amazon dominated the industry with more than a dozen price reductions in 2013, which helped to push the company into its market leadership position. Cloud storage and compute providers have become a major part of the technology industry.

RightScale's report, updated with Amazon's latest cuts, shows Google still cheaper for on-demand use, but Amazon cheaper for "reserved instance" use, in which a company estimates and pays a subscription price for its predicted usage.

Setting Aside Forecasting

James Staten, principal analyst with industry research firm Forrester, notes in a recent blog post that forecasting is becoming more difficult and is not the optimal model to use. AWS and Microsoft require businesses to predict what their usage will be prior to discounts being applied to the total bill.

"Predictability is going down," Staten said in the blog post. "In the current Age of the Customer you have to change your Systems of Engagement faster, not slower. You have to do more analysis,...

Comments are closed.