Cloud News

AWS makes a huge change to its cloud pricing

The cloud market leader – Amazon Web Services, on Monday, made a significant move to charge its customers by the seconds rather than by the hour for use of its EC2- the prime computing engine at the core of Amazon Web Services.

AWS that was launched in 2006, used to charge for its services by the hour. But Alphabet’s Google, introduced in 2013, came in competition with AWS which started charging by the minute, with a 10-minute minimum. Later, Microsoft also introduced its Azure services and things became difficult for AWS.

And now Amazon is making a good comeback by becoming even more granular with charging just by seconds, with a one-minute minimum.

“Today, services like AWS Lambda prove that we can do a lot of useful work in a short time. Many of our customers are dreaming up applications for EC2 that can make good use of a large number of instances for shorter amounts of time, sometimes just a few minutes. Many of our customers are dreaming up applications for EC2 that can make good use of a large number of instances for shorter amounts of time, sometimes just a few minutes,” Amazon’s Jeff Barr wrote in a blog post.

Earlier, the charge-per-hour scheme of EC2 cloud computing service was a big deal, but with the availability of other options, customers paying for a full hour even on using an instance for only few minutes, was being perceived as a problem.

The per-second pricing means the companies will end up now paying less money for the workloads and might also lead them to be more experimental with their use of EC2. This move of Amazon is a classic one: lowering pricing to gain the market share.

Also read: AWS joins Cloud Native Computing Foundation to support open-source containerization projects

The per-minute billing model of AWS will be available from 2nd October, which will be applicable only with virtual servers running the Linux operating system. The Dedicated Per Region Fee, EBS Snapshots, and AWS Marketplace products will still be billed on an hourly basis.

Cloud News

Amazon Web Services Reduces EC2 prices up to 27 percent

Amazon has reduced pricing for Elastic Compute Cloud (EC2) reserved instances running Linux/Unix, SUSE Linux Enterprise Server, and Rat Hat Enterprise Linux up to 27%. According to the official announcement by the company, the prices are being reduced for new EC2 Reserved Instances running Linux/UNIX, Red Hat Enterprise Linux, and SUSE Linux Enterprise Server by up to 27%. This reduction applies to the Standard (m1), Second-Generation Standard (m3), High-Memory (m2), and High-CPU (c1) instance families. More specifically, AWS will automatically provide customers with additional savings when they have more than $250,000 in active upfront Reserved Instance fees.

With this price reduction, Reserved Instances will provide savings of up to 65% in comparison to On-Demand instances. Here are the price decreases by instance family and Region:

These new prices apply to all three Reserved Instance models (Light, Medium, and Heavy Utilization) for purchases made on or after March 5, 2013. Amazon has recommended the review of usage once a month to determine if one should alter his/her Reserved Instance footprint by buying additional Reserved Instances or selling them on the AWS Reserved Instance Marketplace. “However, if you haven’t done it lately, now is the perfect opportunity to review your existing usage and determine if now is the right time to purchase new Reserved Instances.” says the official post by the company.

Here are some general guidelines to help you choose the most economical model:

  • If your server is running less than 15% of the time, use an On-Demand instance.
  • If your server is runninng 15% and 40% of the time, use a Light Utlization Reserved Instance.
  • If your server is running 40% to 80% of the time, use a Medium Utilization Reserved Instance.
  • If your server is running 80% to 100% of the time, use a Heavy Utilization Reserved Instance.

For more information, Click here. To learn more about this feature and other Amazon EC2 pricing options, please visit the Amazon EC2 Pricing and the Amazon EC2 Reserved Instance Page.