back to article Cloud upstart ProfitBricks tries to undercut Amazon on price

Instead of being drenched by Amazon's cloud, cloud infrastructure biz ProfitBricks is trying to get out in front of the hardbacks'n'hosting monolith and lower its prices before Bezos & Co initiate another price drop. In an attempt to tempt customers away from major cloud operators, ProfitBricks' new on-demand server prices are …

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Anyone with half a brain who looks at Amazon's pricing has got to come to the conclusion that it's a rip-off. Seriously, any firm that obfuscates it's pricing as much as Amazon (disks don't come in gigabytes, they come in IOPS - CPUs come in magical fairy units called ECUs) has got to be a warning signal to customers.

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Unless every machine is exactly the same, how else do you quote usage ?

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Corner shop

Corner shop takes on Walmart on price, more like... these guys are a couple of racks in a couple of colos. They do have an impressive PR team, though, given the amount of coverage they get.

I did have a giggle at their launch last year, though; they claimed "first and only cloud to allow dynamic VM re-sizing while running", even though VMware vCloud Director 1.0 offered this back in September 2010. So there were thousands (or however many copies of VMware has sold) of private and public clouds that already had this "first and only" capability. Never let reality get in the way of a good PR pitch!

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The concept of ephemeral storage (and don't forget the prepayment)

Hi,

I am the CMO of ProfitBricks and responsible for our new price/performance leader initiative. And at this point I just want to make two things clear:

First of all Jack forgets to mention that in his example of a AWS EC2 instance with the hourly rate of 0.042 US$ comes with a heavy prepayment for the year of 277$. If you use the instance half the time of the prepayment year that lets the hourly rate rise to roughly 0.10 US$. Doesn't look quite as good any more.

But then Jack is right that a one year medium AWS EC2 instance is roughly 10% below ProfitBrick pricing but only if you compare it to a similar ProfitBricks instance with 410GB of block storage.

Secondly, Jack compares 410GB of ephemeral storage of the EC2 instance (that looses all its data any time the instance is reset, switched of or crashes) that is just on one disk with no redundancy whatsoever with block storage of ProfitBricks where data is secure and written to 4 independent disk minimum. Amazon itself tells people on their website to use the storage that comes with an instance only for temporary data.

I would like to correct Jack: If you need 410GB of temporary storage then ProfitBricks is 10% more expensive because we don't offer such low quality storage at all (I my opinion such ephemeral storage in this size is utterly useless). If you actually compare apples to apples which means a medium instance of AWS EC2 with 410 of EC2 block storage to the respective ProfitBricks plan with 410GB of Block storage then you save 40% against AWS EC2 on demand pricing and still 29% against a reserved instance for one year with medium usage.

And on top of the saving you also get twice the performance at ProfitBricks!

I would go for 29% less price, no prepayment and twice the speed any time :-)

Andreas Gauger

CMO ProfitBricks

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