Amazon Focuses On New Services, Not Price - InformationWeek

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Amazon Focuses On New Services, Not Price
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Charlie Babcock
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Charlie Babcock,
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11/17/2014 | 5:10:15 PM
Yes, but... no price rise on the foreseeable horizon
I agree, the cloud providers could be lowering prices in exchange for market share, and once that share is maxed out, they could raise prices. That's why we'll be better off than with multiple providers, more than Microsoft and its predicted Big Cloud Three of Amazon, Microsoft and Google. On the other hand, small suppliers can take advantage of the latest processor and memory gains, building them in from scratch and launching a new cloud with better price/performance. I don't think there's a big price rise on commodity services on the near-term horizon.   
GAProgrammer
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GAProgrammer,
User Rank: Ninja
11/14/2014 | 9:43:31 AM
1/10th of the cost - for now
Of course, the reality is that Amazon and other clouds providers are in a fierce price war right now. Sure, you can buy in and get these services on the cheap - for now. But what happens in 5 years when Amazon has starved out the competion and the stockholders start demanding returns on the millions (probably into billions by then) that they have put into this endeavor (see the CEO reversal of "services before profits" when he was called out by the shareholders)? Then, just like every other vendor out there, you are locked in and they have you hostage.

I'd say that you should enjoy the (nearly) free ride now, while you can, if you can afford the time spent to learn all this and put in the time/effort to make the move.
Charlie Babcock
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Charlie Babcock,
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11/13/2014 | 11:08:26 AM
Aurora is the nugget in the announcement
You're right, Doug. Aurora is the nugget in the announcement. A relational system designed for use in the cloud and taking advantage of the cloud's built-in software resilience is a potential competitor to Oracle and other proprietary vendors. Jassy said Amazon has been working on it for three years.
Whoopty
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Whoopty,
User Rank: Ninja
11/13/2014 | 10:10:51 AM
Trust issues?
Considering that a lot of US companies lost customers over the Edward Snowden reveals last year and Obama's continued push for surveillance, I'm quite impressed by Amazon's ability to keep drawing attention and new customers in. 

You'd think at this point everyone would be afraid of doing business with US based companies, but apparently not. 
D. Henschen
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D. Henschen,
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11/13/2014 | 9:46:35 AM
Aurora is the MySQL-compatible chestnut within this announcement
Many cloud practitioners whould much rather run cloud services, like the new Amazon Aurora alternative to MySQL, than running software on cloud infrastructure. The apporach lets them skip lots of messy administrative crap that they can leave to the service provider. Sure, you can get MySQL as a service in the cloud (including on AWS), but this is sure to be a cheaper and easier-to-deploy option through a single relationship with Amazon.

Customers probably also feel like they have a portability factor in that they could reverse-engineer their way into an on-premises DBMS deployment or MySQL on another cloud if required or desired, but I'd be wary of many tiny ways in which this database management service might lock you in.


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