Price Spikes Impact Amazon Spot Cloud Market
Bidding for unused capacity on Amazon’s EC2 cloud computing platform has become more competitive, causing periodic price spikes in the spot market Amazon has created. Prices for virtual machine deployments that normally cost less than a dollar an hour to have risen to $5 to $10 an hour, and sometimes even as high as $999 per hour.
Amazon Web Services (AWS) says the price spikes are caused by periods of “constrained capacity” in particular availability zones and customer bidding strategies that employ above-market bids to prevent interruptions of their computing jobs. Amazon says these strategies result from confusion about how spot pricing works, and has posted a video outlining effective approaches to spot bidding…

