AWS lowers prices for the 30th time, but do customers really care anymore?
April 4, 2013
Grazed from ZDNet. Author: Nick Heath.
Since Amazon launched its public cloud service in 2006 it has lowered the cost of using the platform 30 times. The gradual reduction in the price of renting virtualised servers and storage through its EC2 and S3 offerings has driven down the wider infrastructure as a service (IaaS) prices. Amazon announced the latest drop in the price of its S3 storage service yesterday, lowering the cost of making GET requests by 60 per cent and halving the prices for PUT, LIST, COPY and POST requests.
Today AWS dominates the IaaS market, with its cloud services netting Amazon an estimated $700m in revenue in 2011 – about 20 per cent of the $4.23bn that Gartner said the "systems infrastructure" market was worth that year. But do these price drops really make a difference to which IaaS a company chooses? Maybe not, according to Kyle Hilgendorf, research director in Gartner’s service for technology professionals, who said the cost of IaaS has dropped to a point where they have less of an impact…
"Prices are getting to the point at which they’re so low that these small repeated drops don’t make an impact on buying decisions so much," said Kyle Hilgendorf, research director in Gartner’s service for technology professionals. In the case of the latest price reductions Hilgendorf said an organisation that was making 10 million PUT or GET requests to S3 in a month would only save somewhere in the region of $10 to $20. "For a lot of enterprise companies seeing a virtual machine or object store price drop by a penny here or there doesn’t make the difference as to whether they will buy it or not."…
Read more from the source @ http://www.zdnet.com/aws-lowers-prices-for-the-30th-time-but-do-customers-really-care-anymore-7000013530/