Cloud wars! In what is the 61st price reduction for AWS, Amazon has announced price drops for Reserved Instances and M4 Instances, just a couple of months after Google did the same.
For its Committed Use Discounts.
Amazon Web Services made official these price cuts on Wednesday, with this new round of discounts mainly geared to generating savings for customers that want to book cloud capacity for one to three years.
These long-term savings for sustained AWS usage are already very popular, offering users savings of up to 75% over on-demand pricing.
AWS evangelist Jeff Barr outlined these new changes in a blog post, saying:
“In addition to reducing our prices on a regular and frequent basis, we also give customers options that help them to optimize their use of AWS. Our customers use multiple strategies to purchase and manage their Reserved Instances. Some prefer to make an upfront payment and earn a bigger discount; some prefer to pay nothing upfront and get a smaller (yet still substantial) discount.”
These are the average reductions for No Upfront Reserved Instances for Linux in representative regions:
Amazon has also added the three-year No Upfront Standard Reserved Instances to these options, for most current generation instances types.
On top of all that, the cloud company is also reducing prices for No Upfront Reserved Instances by up to 17%, three-year Convertible Reserved Instances by up to 21%, and General Purpose M4 Instances by up to 7%, making all these solutions much more attractive.
As noted above by Barr, AWS can continue to reduce its prices because it works with its suppliers to drive down costs, while also finding ways to build more efficient hardware and software solutions.
The prices customers will see will depend on their region and operating system, AWS clarified.