Amazon Cuts Cloud Storage Prices, Adds Server Instances - InformationWeek
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Amazon Cuts Cloud Storage Prices, Adds Server Instances
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cbabcock
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cbabcock,
User Rank: Strategist
1/23/2014 | 12:26:01 PM
Is Amazon making life difficult for competitors?
Amazon boasts that this is its 40th price cut since launching EC2 in 2006, a relatively meaningless statistic. The question is, cut prices where and how much? In this case, the answer is on the competitive storage front. AWS cut EBS block storage by 50%. Remember, Google dropped I/O charges and cut its Persistent Disk prices 60% on Dec. 3 in a bid to get into more serious contention for cloud custolmers. Persistent Disk is Google's equivalent to EBS.See  http://www.informationweek.com/cloud/infrastructure-as-a-service/google-compute-cloud-challenges-amazon/d/d-id/1112900.  So is Amazon, with this move, making life difficult for competitors. Or should it be more worried about investors?  
Lorna Garey
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Lorna Garey,
User Rank: Author
1/24/2014 | 2:18:02 PM
Re: Is Amazon making life difficult for competitors?
I know that using cheap scale-out components, open-source software and cutting-edge data center design means Amazon can do pretty much everything more cheaply than typical enterprises. But they can't do it free! Where's the floor? And at what point are margins so thin that they start to hurt? Plus, they're getting IT used to these prices. How do you go up without churn?


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