Amazon Counters Google with Huge Price Cuts in Cloud Computing Services

Amazon Counters Google with Huge Price Cuts in Cloud Computing ServicesWithin 24 hours of Google's Tuesday announcement of cloud computing price-cuts, Amazon responded aggressively by announcing that the costs of all its major cloud services will be slashed substantially.

Amazon AWS made the cloud-computing price-reduction announcement public on Wednesday, March 26, when it said that the price-cuts will be available on its key cloud services, including EC2 cloud computing platform, Storage services S3, ElastiCache, Elastic MapReduce, and RDS database, among others.

In its elaboration of the price-cut move, Amazon AWS said that the cost of EC2 cloud instances is being slashed by 40 percent; while the charges for the first terabyte storage on Amazon's S3 would be $0.03 on standard storage, and the same data will cost $0.024 for the reduced redundancy storage.

Moreover, the cost of ElastiCache node has been slashed by more than 34 percent; while the reduction in cost for Elastic MapReduce will be in the range of between 17 percent and 61 percent. The cost of RDS data base services is also being reduced substantially by nearly 40 percent.

The price-reduction which Amazon has announced for all its leading cloud services has positioned the company's platform rather competitively in the marketplace for application hosting on the Amazon cloud computing platforms. Prior to the Amazon announcement, the Google platform was comparatively much cheaper in nearly all cloud services.