Microsoft’s Attempt at Competing with Amazon’s Cloud Services by Cutting Azure Prizes
22 Apr. 2013 Enterprise Tech News
Microsoft has cut down the prices of its Windows Azure cloud service in an attempt to compete better with Amazon’s cloud services.
The key business of Microsoft has been selling servers and client software. Cloud services provided by other companies such as Amazon, Google and many others has hence become a threat to Microsoft’straditional business. To gain a better market share in the cloud space, the company has announced that it will be matching its prices with that of Amazon’s EC2 (Elastic Compute Cloud) for some of its online data services by nearly 21% to 33%.
Bill Hilf, of Microsoft, gave a statement, “Our announcement today is a significant step in our cloud computing strategy, which has been influenced directly by our discussions with customers and partners around the world. Customers have also told me that they don’t want to have to choose either a low price or good performance; they want a low price and good performance. That’s why today we are also announcing a commitment to match Amazon Web Services prices for commodity services such as compute, storage and bandwidth”.
To improve their cloud services, Microsoft has added new high memory VM instances (28GB/4 core and 56GB/8 core). This is expected to effectively manage demanding workloads and support new programs such as SQL Server, SharePoint, BizTalk Server and Dynamics NAV.
Microsoft claims that there are more than 200,000 Windows Azure customers at the moment, which include telecommunication companies and the likes of General Motors. We now have to wait and see how this slash of prices helps Microsoft gain a better market share in this competitive space.