Cloud – Market forces working

Some time back I had complained that price of cloud service offering are not coming down fast enough compared to the drop in hardware price reduction. But then we see the following release from Amazon – AWS.

“…we’ve often told you that one of our goals is to drive down costs continuously and to pass those savings on to you…” (see this)

Indeed, from 1st July, they have eliminated the inbound data fee. It used to be US$ 0.10 per GB.

Also they have reduced the outbound data fee between 20% (for lower end of usage) to almost 40% (at the higher end of usage).

Here is the comparison of per GB outbound data fee, before and after 1st July (for US-Standard, US-West and Europe regions):

Slab for Data Transfer per month

Price per GB before 1st July

Price per GB from 1st July

First 1 GB



Up to 10 TB

US$ 0.15

US$ 0.12

Next 40 TB

US$ 0.11

US$ 0.09

Next 100 TB

US$ 0.09

US$ 0.07

Next 350 TB

US$ 0.08

US$ 0.05

Over 500 TB

US$ 0.08

Special price – not disclosed

However, was this change in price done, as claimed by Amazon, to pass the cost reduction benefit to customer? Probably not because few days before this announcement Microsoft had announced that inbound data transfer will be free from 1st July, 2011 (see this).

BI in the Cloud becomes attractive

This change may one up interesting possibilities for doing DW & BI application on the cloud. Earlier, the biggest roadblock for moving such application to cloud was the prohibitive cost of transferring data into the cloud. With the removal of that stumbling block the economics of BI in the cloud looks more attractive.

3 Responses to “Cloud – Market forces working”
  1. nayanzaveri says:

    For personal users this seems a reasonable price….

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