Microsoft Azure to undercut Amazon Web Services pricing
Posted by brennels on July 13, 2009
By Barbara Darrow, Senior News Director, SearchCloudComputing.com published this article on Microsoft Azure pricing to uncercut Amazon Web Services.
“If Microsoft Azure services cost 10% less than comparable Amazon Web Services, the company could win converts to its camp despite its late start.
Microsoft has told some big customers that the 10% differential is part of a broad pricing plan for the services. Another source said Microsoft used both AWS and services like Go Daddy as reference points for price comparisons on the business and consumer side. “They talked about coming in at 5% or 10% below what’s already out there,” he said.
According to one corporate IT manager, Microsoft, for purposes of the price comparison, used the less expensive AWS Linux compute and storage services as the baseline.
“AWS uses Xen virtualization as the base, so you are only paying for the guest OS instance when you use it. It’s my understanding that Microsoft will adjust [its] model to match this, with guests running on Hyper-V on a base 2008 R2 OS that you won’t be paying for,” he said.”
