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Amazon EC2 Pricing Changes Effective April 1, 2014

aws.amazon.com

101–110 of 151 posts

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#101
post #3

Just out of curiosity, why would one choose AWS over Digital Ocean? Isn't DO considerably cheaper?

Digital Ocean isn't PCI compliant. http://digitalocean.uservoice.com/forums/136585-digital-ocea... AWS is.

You say that like it matters. Read the comments on that link.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#103
post #93
post #3

Just out of curiosity, why would one choose AWS over Digital Ocean? Isn't DO considerably cheaper?

The EC2 C3 instance type is going to be about the same price as DO for 1 year reserve and less than DO for 3 year. Spot pricing will also be lower than DO for C3s. On top of that EC2 is far superior to DO in many ways: EBS off instance storage (DO is local storage only), volume snapshots, IPv6, load balancing, private IPs, multiple IPv4 addresses, 8 data centers globally, firewalls, VPN, VPC, PCI DSS compliance, comp…

EC2 does not have IPv6.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#104
post #79

how are they still making profits ?

Amazon markets the story that they operate on thin margins (which no doubt they do in retail) but in AWS the margins are probably fairly attractive. They don't break this out in their SEC filings because (a) they don't have to, and (b) doing so would undermine their marketing message.

Economically cloud can make a lot of sense for several potential customers, including:

* those who have highly variable workloads (so they can spin up lots of servers to meet demand then spin them down afterwards)

* those who favor OpEx over CapEx (Like startups)

* and for those who are bypassing internal IT for TTM reasons (e.g. "shadow IT")

Another point to consider is that while AWS is increasingly dropping prices the same is in effect happening for people procuring their own hardware. The performance over price ratio (on multiple axis) is also improving for on premises deployments (c.f. Moore's Law).

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#105
post #84

I just reserved a series of heavy-utilization m3.xlarge instances for roughly $30k. Apparently, if I had waited a month, I could have saved about $13k because of these price reductions. I can't help but feel that I got really fucked by poor timing that I couldn't control. It would hurt so much less if these price changes were more gradual and somewhat consistent (perhaps monthly).

It's worth calling and talking to your sales rep about this. I've found AWS to be surprisingly accommodating with pricing.

Ditto. At the AWS keynote today Andy Jassy, Senior Vice President, spoke of cost saving initiatives AWS has going with $200m already saved via automated notifications to customers to power down their inactive EC2 instances. Andy emphasized the importance of great customer service by AWS & helping customers cut costs. Use that as your leverage point in the discussions with your sales rep. Hope it works out for you!

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#106
post #79

how are they still making profits ?

They're not making profits. Most quarters they are only slightly profitable. Current P/E is 582, which is astronomically high. E.g. for comparison Apple's P/E is 13.

But that's been Amazon's strategy for almost two decades. Their goal is to instead grow their business. Currently they are at $74 Billion / year in revenue, and still increasing. Once they stop their massive spending on growth, they will (presumably) be able to increase their profits.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#107
post #52
post #21

Earlier quoted context omitted.

Well, you break your services out onto stateless and stateful machines. After that, you make sure that each of your stateful services is resilient to individual node failure. I prefer to believe that if you can't roll your entire infrastructure over to new nodes monthly then you're unprepared for the eventual outage of a stateful service. Most databases have replication but you need to make sure that the characterist…

And you do what for loadbalancing?

If ELB is down in a given region then DNS failover to another region. Assuming you feel comfortable rolling your entire infrastructure monthly, have good images / configuration management, and have the state replicated in the backup region.

That or sidestep ELB in your region to a team of stateless load balancers that terminate SSL.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#108
post #30

This is huge. Startups everywhere are huge beneficiaries of this price war between Amazon and Google over the future of cloud computing.

Let's just hope they all stay in business so we don't end up with only one player in the market...who can then jack up prices at will.

Don't you think the start up costs for competitors are always going to be low enough to stop the incumbents going mad with it?

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#109
post #103
post #93

Earlier quoted context omitted.

The EC2 C3 instance type is going to be about the same price as DO for 1 year reserve and less than DO for 3 year. Spot pricing will also be lower than DO for C3s. On top of that EC2 is far superior to DO in many ways: EBS off instance storage (DO is local storage only), volume snapshots, IPv6, load balancing, private IPs, multiple IPv4 addresses, 8 data centers globally, firewalls, VPN, VPC, PCI DSS compliance, comp…

EC2 does not have IPv6.

It does with ELB

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#110
post #12

I would be so happy if Heroku passed along these price cuts to their customers, but based on past AWS price cuts, I'm not holding my breath.

Heroku hasn't changed pricing since they launched, actually. The only historical price reference I quickly found was that the EC2 was $0.085/hr for (what is now called) an m1.small[1].

Heroku launched with $0.05/hr pricing.

Amazon's new m1.small pricing is $0.044/hr, nearly a 50% price drop over four years.

Heroku still is $0.05/hr, the same price as when it launched. Heroku runs on EC2.

[1] http://www.sunsetlakesoftware.com/2010/09/15/how-run-drupal-...

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