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December 5, 2014

AWS slashes transfer costs amidst a creeping Google

Also restructures EC2 Reserved Instances.

By Ben Sullivan

AWS has slashed the costs for several types of data transfers.

Pricing for data transfer from AWS to the Internet is now 6% to 43% lower, depending on the region and the amount of data transferred per month. Data transfer from AWS to Amazon CloudFront is now free of charge.

Pricing for data transfer out of CloudFront edge locations in the United States, Europe, Japan and Australia is now 4% to 29% lower, depending on the edge location and usage tier.

Writing on the AWS blog, AWS evangelist Jeff Barr said: "As I have noted in the past, we focus on driving down our costs over time. As we do this, we pass the savings along to you!"

The announcement follows Amazon’s move earlier this week to ‘simplify’ its EC2 price structures.

Now, instead of being tiered by usage, EC2 Reserved Instances will now be tiered by the amount a customer pays upfront for a one or three year usage plan.

The move shows how Amazon is being affected by increasing pressure from Google’s Cloud Platform. In March, Google introduced ‘Sustained Use Discounts’ which reward customers with discounts if they use more computing resources.

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It is this type of pricing model that Amazon moved closer to with this week’s price restructuring, a quiet affair that is far from Amazon’s usual heralding of price changes at public conferences. Is Google treading on some toes?

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