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Director, OpenShift Strategy at Red Hat. Founder of Rishidot Research, a research community focused on services world. His focus is on Platform Services, Infrastructure and the role of Open Source in the services era. Krish has been writing @ CloudAve from its inception and had also been part of GigaOm Pro Analyst Group. The opinions expressed here are his own and are neither representative of his employer, Red Hat, nor CloudAve, nor its sponsors.

3 responses to “Cloud Pricing War Begins”

  1. Gabriele Bozzi

    Krishnan, are you aware that Amazon offers what they call “reserved instances?
    For 1 yr reservation you can have a small instance for 40,58 US$ per month, inbound traffic is free, outbound traffic is 2,1US$ for 14GB (to compare with MS offerings).
    For the record these are not rock-bottom prices. A lot can be done when dealing with big q.ties of instances.
    However I think comparing the price this way is misleading
    First off: traffic plays a role, if not, you don’t need the Cloud, simply stated. When you compare the bandwidth with a common datacenter offerings Amazon and Microsoft make your life easier (no bursts, no funny caps etc) and savings are evident.
    Secondly, Microsoft is a PaaS provider, Amazon is heading there (to PaaS) but has no tight integration with specific dev-tools.

  2. Krish

    Yes, I am aware of reserved instances. I didn’t take it into account because it is representative of traditional hosting era pricing. I am more inclined to discuss the pay as you use pricing model of cloud era.

    I never said traffic doesn’t play a role. Of course, the pricing in the cloud infrastructure is heavily dependent on traffic. In fact, cloud providers are raking up their profits there.