Keep a close look on the new Amazon prices

April 8 2014 | by Eran Abramson

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These past few weeks have been rather exciting in the AWS and GCP rivalry, with Google announcing new pricing and features and Amazon countering a day later with their own pricing updates. While having front row seats for this cloud vendor fight is definitely exciting, we must keep an eye on the fine details as to make sure we understand what we are actually getting.

Amazon Web Services have dramatically reduced their on-demand pricing as well as some of their reserved instances as to combat Google’s huge price drop. Still, if you read the fine print, you will realize that the price cuts are not across the board, rather only on the ones which are comparative to Google’s offering. This means that some instances you are using or plan on purchasing may not include the cost reduction mentioned, thus the actual announcement doesn’t relate to your exact needs.

In addition, as those familiar with reserved pricing are aware, there are three types of reserved offering types: light, medium, and heavy, with each having its respective upfront fee as well as a per hour rate. For some reason unknown yet, Amazon have removed “light” from their website last week, only to bring it back a few days later. This may have been an innocent error, or perhaps a foreshadowing of changes to come.

Furthermore, it seems that not all Light utilization prices have been updated properly, so in some cases on-demand will actually be cheaper than reserved…Wait what!!!

Cloudyn always illustrates to users instance comparison between reserved (Light, Medium and Heavy types) and on-demand pricing plans, so you may decide what is best for you and see when you begin saving. With the new price changes (or lack of), there are different anomalies you must be aware of.

Allow us to demonstrate:

Update [April 16, 2014]:
Pricing page has been updated again, this time the m1 family has disappeared, except m1.small. It is still mentioned in Spot and EBS-Optimized sections. Reasons unknown.

For C3 family, light RI purchased today will end up costing you more than on-demand (example presented is of c3.xlarge):

c3 xlarge-offering-types

For M1 family light RI will break even later than heavy (example presented is of m1.large):


I2 family hasn’t changed; light RI is first to break even first of the 3 types (example presented is of i2.2xlarge):


For families where the prices haven’t been changed, it may indicate that additional price reductions may roll out within the next few months….as Amazon usually does.

At the end of the day, we need to keep track of all changes, which are much more dynamic than a simple news conference. The good news is that Cloudyn automatically keeps an eye on all changes and always knows what’s best when it comes to cloud cost optimization.

Why don’t you find out today where you stand? Try Cloudyn for free.

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