A substantial cuts in cloud computing services of Microsoft Azure range in the slabs of 27 to 35 percent in cloud compute instances, and 44 to 65 percent of cost reduction on cloud storage services.
Another big price slash comes from the software giant Microsoft Corporation that announced a huge price cuts in its cloud computing services based on MS Azure. The price reduction came after the aggressive tug of war between Google and Amazon last week. The reduction in Microsoft Azure cloud computing services would be applicable with effect from the May 1, 2014. This announcement was made public through MSDN post by Steven Martin on March 31, 2014.
According to the announcement, the reduction in the cost of cloud computing service would be available for both the cloud compute and cloud storage. Meanwhile, it was also informed in the statement that the reduction in the price will also be applicable to the company’s Linux based cloud computing instances, although the major part of the cloud service of the company is based on Windows – still as much as about 20 percent of the cloud computing workloads of the company runs on the Linux. This was publicly told to the reporters by the CEO of the company Satya Nadella last week.
It is worth noting that the company has announced previously that the prices of the cloud computing service of the company would be brought to the level of Amazon cloud services. While reminding about that commitment, Steven Martin wrote in his official blog post, “Consistent with our previously announced commitment to match Amazon on prices for commodity services, we are cutting prices on compute by up to 35% and storage by up to 65%. We recognize that economics are a primary driver for some customers adopting cloud, and stand by our commitment to match prices and be best-in-class on price performance”.
He further added to maintain the company’s commitment towards innovation and value of service to the customers that, “While price is important, and something that will continue to grab headlines, there are three key factors at play in cloud computing: innovation, price, and quality. Innovation and quality will prove far more important than commoditization of compute and storage. Vendors will ultimately extol their track records for building and running services far more than their prices and SLAs”.
Many analysts are not very certain about when this round robin of price-cut on the cloud computing service among the giant providers will end, but they are very much sure about this fierce competition to continue in near future.