Today it was the turn of Microsoft to announce cuts in the price of its Azure service in a move that will keep its promise of matching the price of Amazon . Amazon announced price reductions last week, Microsoft followed up with theirs today.
Microsoft made an announcement that “Consistent with our previously announced commitment to match Amazon on prices for commodity services, we are cutting prices on compute by up to 35 per cent and storage by up to 65 percent.”
Vole said that economics are a primary driver for some customers adopting cloud, and stand by our commitment to match prices and be best in class on price performance.
In addition Vole announced a new tier of General Purpose Instances called “Basic” (A0-A4) that offers similar machine configurations as the Standard tier of instances offered today (Extra Small [A0] to Extra Large [A4]).
This will end up 27 percent less than the corresponding instances in use today. These will still be around but will be called “Standard” and will not include load balancing or auto-scaling, which are included in Standard.
Microsoft’s announcement is showing how cutthroat the cloud market is becoming and how much difficulty Amazon is going to have staying on top.
Google started the current price war two weeks ago citing the plummeting costs of hardware. It was followed by Amazon matching the cuts.
However, it is good news for companies thinking of moving onto the cloud. The continual cloud price cuts make it hard to justify continuing to run in-house operations, which would be far more expensive, both in terms of hardware costs and maintenance costs.