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back to article Amazon: Hard luck Microsoft, AWS will always be cheaper

Amazon’s struck back at Microsoft camp over its "lowering" of its cloud computing prices by touting Amazon’s track record for saving money. The etailer-turned-cloud-giant’s chief technology officer Werner Vogels yesterday claimed there had been 31 price reductions in AWS since the service went live in 2006 – seven years ago. He …

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Anonymous Coward

Always cheaper?

Maybe for Linux instances, but I bet MS can turn the screws on hosted Windows instances should the wish to bring AWS in line with Azure pricing.

What, you say they would never do such an anti-competitive move?

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JDX
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Re: Always cheaper?

It's anti-competitive to lower their prices?

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Anonymous Coward

Re: Always cheaper?

Microsoft are not one to sell on the up front price being lowest. Cheapest != Best. Lowest TCO would be Microsoft's aim....

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Anonymous Coward

@JDX

No - they can raise the price they charge AWS for Windows licenses (but don't have to pay themselves). Simplez!

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JDX
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Re: @JDX

They could but they make tons of money from AWS as well. It would not do MS any good if their AWS customers got huge price hikes because migrating to Azure might be no easier than porting to Linux and staying on AWS without needing to migrate data.

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Anonymous Coward

Re: History repeates itself

Agreed

Hands up who else got stung by the CAL price increase.

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Anonymous Coward

Re: History repeates itself

"MS have a mighty fall ahead of them."

Well no signs of it yet. Their enterprise division just announced record revenue and increased growth....

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Thumb Up

Re: History repeates itself

Indeed, the wheel doth turn. Microsoft have certainly left it to the eleventh hour to realise this, and now they're having to run desperately to try and keep up. While they may (or may not) make headway with some of their newer portfolio, they are inevitably competing in fields that others already have a strong hold over.

Microsoft's only real hope of regaining their footing is to survive until the next big market shift - and have the foresight to see it for what it is and take advantage of it when it happens. The survival side, I expect they'll manage - at absolute worst, there will be licences, patents and so forth, although personally I'd like to see them get a bit more of the mobile market share (along with Firefox - carve up the market, promote competition and innovation).

However, given their recent track record, if they miss the next big thing, it's all over.

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Anonymous Coward

Re: History repeates itself

The latest 'big' thing on form factors is 7"/8" handheld tablets. Microsoft missing from party, does that mean its all over? The next big thing on devices is probable hybrid detachable/convertible, does your logic mean its all over for Apple if they don't do a transformer/surface copycat product soon?

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Black Helicopters

Re: History repeates itself

@AC 15:47 - when I say "next big thing", I mean a shift on a paradigm scale: maturation of the internet, for example, or the current shift towards mobile technology (which I would categorise 7"/8" tablets as part of).

It'll probably be another 5-10 years before we see another shift of this kind of scale - that's the boat Microsoft can't afford to miss. Until then, they can probably survive off patent trolling - although personally I'd like to see them make a bit of headway back into current markets, if only to prevent another Microsoft-monopoly-like situation.

When that next thing does hit though... well, I'd expect Apple and Google to survive, even if they do miss the boat. But Microsoft have been playing catch-up for too damn long now, so they're in a much more dangerous position, especially considering the lack of trust they've landed themselves with, so for them it really is adapt or die time.

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Mushroom

Re: History repeates itself

The next big thing is touch and gesture control. Microsoft are already well ahead of the curve with Windows 8, Kinect, and their range of very large touch screens....

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Lock-in

"Of course, AWS can lock you in to Amazon by sheer volume of data: it’s easier and cheaper to upload data than to remove it. Once it’s there, you need big enough pipes to extract it - and you'll have to pay Amazon to do it."

This should not be forgotten. You should always have a current price pinned to the wall for bulk extraction of all your data through Amazon's 'Import/Export' service (http://aws.amazon.com/importexport/). If you can't afford to pay it on any given day, realise you are locked in.

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Holmes

Re: Lock-in

And only now you get why companies want you on cloud/subscription models ?

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Silver badge

Re: Lock-in

Really, if you have any sense you will have an independent backup copy so no matter what your cloud provider does, or has done to them, you still have your data.

Though before you get to that stage, you should be asking serious questions about the security of all of your data in another company/country. No open client-side encryption? Then fsck off!

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JDX
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Re: Lock-in

Easy to say, harder to do when you're talking about big amounts of data. Even if you have a copy, getting it into another setup is a big job because data volume has increased far faster than upload speeds.

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Happy

New International

I was there yesterday and found it hilarious that a few minutes before News International's CIO came on (and referred the the company as NI the whole time) everyone was asked to turn their phones off.

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I love the fact that 330,000 customer recommendations would lead to $22M in savings. That works out at a massive $67 saving per customer and I presume per year. That is a drop in the ocean of other considerations like management, availability, performance etc. I'm not saying MS is better at these at all, just that the saving is small and probably not relevant versus other decisions!

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Facepalm

Azure a security joke..

Don't rely on Azure if you have IP to protect; you will lose it. I suspect highly, that there are insiders over there allowing many outside interests access to customers data in a way that should cause someone to be shot at sunrise! I have great disdain for what they are trying to do over there. Microsoft needs to wake-up to the customer's security needs, and quit putting its collective head in the sand.

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