Live data from Hacker News

Amazon EC2 Pricing Changes Effective April 1, 2014

aws.amazon.com

121–130 of 151 posts

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#121

That only took one day! This competition looks good for the future.

I wouldn't be surprised if this was Google-motivated, but since there was an AWS summit today, it could have also been very coincident timing.

Amazon must've known the Google Cloud price reduction was coming.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#124
post #119

Earlier quoted context omitted.

When it comes to companies like Google and Amazon, I don't think that's a worry.

I'd actually be worried with Google. They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. If these companies find themselves in a position that they're subsidizing their cloud computing offerings with profits made elsewhere, it might make more sense just to pull the plug.

> They've demonstrated a willingness to shut down revenue sinks even if it costs them good will.

Google isn't running a charity. Shutting down losing services is a smart business decision. If you see the cloud going the way of the typewriter, then you should also be looking elsewhere to run your computing resources.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#125
Something we should always remember when considering the implications and hermeneutics of AWS pricing (from Brad Stone's book):

Bill Miller, the chief investment officer at Legg Mason Capital Management and a major Amazon shareholder, asked Bezos at the time about the profitability prospects for AWS. Bezos predicted they would be good over the long term but said that he didn’t want to repeat “Steve Jobs’s mistake” of pricing the iPhone in a way that was so fantastically profitable that the smartphone market became a magnet for competition.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#126
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.

Somehow I don't thing a battle of attrition between Google and Amazon would end any time soon.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#127
post #5
post #3

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

DO's "internal" networking/security group support is still immature. I use DO for personal stuff, but at work we use AWS. Just never EBS. Ever.

> Just never EBS. Ever.

I wouldn't take it that far! There is conflicting information on which between Standard EBS and Instance store performs better but there have been benchmarks to support that EBS does perform more consistently than instance store (example: http://serverfault.com/questions/111594/which-is-faster-for-...). Also, you can now launch EBS optimized instances which use a network stack intended to separate EBS I/O giving better throughput. iops is expensive but is great to have when you need it.

Sure, if EBS goes down in your zone, you're hosed. But unless you're completely independent as a service, chances are you do depend on something which uses EBS so you might be hosed anyways.

Instance store is great free storage to use. Since it needs to be mounted explicitly, I'm guessing that most people don't end up using it. Thats a shame too; so use that free storage but EBS isn't evil either.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#128
post #119

Earlier quoted context omitted.

I'd actually be worried with Google. They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. If these companies find themselves in a position that they're subsidizing their cloud computing offerings with profits made elsewhere, it might make more sense just to pull the plug.

> They've demonstrated a willingness to shut down revenue sinks even if it costs them good will. Google isn't running a charity. Shutting down losing services is a smart business decision. If you see the cloud going the way of the typewriter, then you should also be looking elsewhere to run your computing resources.

Yeah, I don't disagree at all. I think Amazon is making a longer term strategic move with AWS and is more likely to swallow a few years of not making any money than Google however. Of course a couple years ago I would have said the same about Google, but they've been on a bit of a tear recently where that doesn't seem to be as much the case anymore.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#129
post #73
post #3

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

Tooling. I find it bizarre that Amazon put so much effort into pushing the idea theat their killer feature is price. Plenty of people outflank them on price. What's best about Amazon it their tooling. They have hands-down better tooling than their competition. I use gandi for my personal stuff (because I'm less bothered by the French government spying on me than the US one) and it's much cheaper than Amazon. But in t…

> I find it bizarre that Amazon put so much effort into pushing the idea theat their killer feature is price. Plenty of people outflank them on price.

This is the Southwest Airlines model. Tell everyone you're great on price often enough, even if it's not always true, and plenty of people will think you're good on price.

Re: Amazon EC2 Pricing Changes Effective April 1, 2014

#130
post #111

This is crazy. The savings we'll see from this alone are enough for another full-time dev or two.

How many instances do you run? At $17.52 saved per year for m1.small that means you must be running over 10k instances to save enough for another full-time dev or two... if your devs are located in SF area.

We're currently spending about $20k/month on EC2 and are about to migrate a bunch of our colos over. Between what we are spending and what we're budgeting to spend with our new architecture, we're looking at a couple devs/year savings (Victoria, BC)
Post reply on HN