AWS Lowers Prices – How Will PaaS Providers React?


Web Development In The Cloud

Now that Amazon has lowered pricing for a number of AWS services, how will providers who leverage those services react? Will they also lower prices? Let’s consider one provider I’ve been using, EngineYard. So, using them as an example, let’s say that you set up a basic medium instance on EngineYard. One will cost you about 22 cents an hour for a basic configuration.

Will there be a dominos-effect from the AWS price reductions? Will there be a dominos-effect from the AWS price reductions?

Their cost was a little over 11 cents an hour under the old pricing structure. You might think, wow, they’re making a lot of money – almost doubling the cost it would be if you rolled your own EC2.  That is a fair enough thing to say, but keep in mind that with a service like EngineYard, you’re getting a lot of hard work done for you. So your choice is, set up an EC2 environment on your own…

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