Amazon surprised its cloud service users on Tuesday, July 9th, when the multinational organization announced a massive cut in prices on its Elastic Cloud (EC2) virtual private cloud offering. According to the official announcement, Amazon has slashed up to 80 percent of its cloud service prices. As a result of that huge cut in prices for each geographical region, now customers of Amazon’s cloud service will pay $2 for an hour instead of $10 per hour. And in case of on-demand dedicated instance the fees of service will be slashed by up to 37 percent.
Talking about this huge cut in prices of cloud services, Cameron Peron of cloud services company Newvem said that, “This is a huge win for AWS users, especially for larger enterprises that need an on-demand solutions to better manage burst workloads.”
With this announcement Amazon has left its rival companies way behind when it comes to offering cheap cloud services, as search engine giant Google has recently reduced its operations and App Engine prices by 25 percent. In addition to this, Rackspace and Microsoft’s Azure have also witnessed decent cut in prices, but so far Amazon clearly stands out as a winner in terms offering the cheapest rates.
Here is the official announcement from Amazon that explains the reduction in the prices of cloud services in detail:
“We are excited to announce a price reduction of up to 80% on Amazon EC2 Dedicated Instances. Dedicated Instances are EC2 instances that run on single-tenant hardware dedicated to a single customer account. They are ideal for workloads where corporate policies or industry regulations require that your EC2 instances be isolated from instances that belong to other customers at the host hardware level.
Like our multi-tenant EC2 instances, Dedicated Instances let you take full advantage of On-Demand and Reserved Instance purchasing options. Today’s price drop continues the AWS tradition of exploring ways to reduce costs and passing on the savings to our customers. This reduction applies to both the dedicated per region fee and the per-instance On-Demand and Reserved Instance fee across all supported instance types and all AWS Regions. Here are the details:
– Dedicated Per Region Fee – An 80% price reduction from $10 per hour to $2 per hour in any Region where at least one Dedicated Instance of any type is running.
– Dedicated On-Demand Instances – A reduction of up to 37% in hourly costs. For example the price of an m1.xlarge Dedicated Instance in the US East (Northern Virginia) Region will drop from $0.840 per hour to $0.528 per hour.
– Dedicated Reserved Instances – A reduction of up to 57% on the Reserved Instance upfront fee and the hourly instance usage fee. Dedicated Reserved Instances also provide additional savings of up to 65% compared to Dedicated On-Demand instances.
These changes are effective July 1, 2013 and will automatically be reflected in your AWS charges.”
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