Home > Blog > Amazon Indulges in a Major Price Cut for Dedicated Instances of Its EC2

Amazon Indulges in a Major Price Cut for Dedicated Instances of Its EC2

11 Jul 2013

Amazon cut down the prices for dedicated instances of its EC2 services by 80%, which is a major cut down even by the Amazon standards.


Yesterday, Amazon announced that it will be cutting down the prices, by 80%, on the dedicated instances of its EC2 cloud computing platform. An instance is basically a unit of the compute power that users rent by the hour, and is also the key base unit of AWS or any other cloud infrastructure.



This price cut will be applicable from July 1 and will be applicable for all supported instance types and AWS regions. The company has also decided to cut down on the prices for its dedicated on-demand instances by up to 37% and for dedicated reserved instances by up to 57%.


The dedicated instances are different from the regular EC2 instances, since they run on a single-tenant hardware dedicated to a single user. The company believes that, “These instances are ideal for workloads where corporate policies or industry regulations require that your EC2 instances be isolated from instances that belong to other customers at the host hardware level”.


However, Amazon’s move has come at a time when it is struggling to compete with the cloud counterparts who, unlike AWS, maintain that the private cloud capabilities are offered by them as per suitability for the regulation-restrained industries. Although AWS leads the league in public cloud infrastructure it faces rivals like- GCE, Microsoft Windows Azure, ProfitBricks and CloudSigma – who offer sub-hour incremental pricing on their instances.


We can hope that Amazon’s price cut is able to cater to the objective behind this move and justifies its tradition of exploring ways to reduce costs and passing on the savings to the customers.