Amazon lowers on-line storage prices

Amazon has trimmed down its price structure for its cloud based storage service, where the act is clearly indicative of the fact that the company wants to beef up profits - through competitive pricing.

The S3 storage service from the company will cost 10 percent less, for the initial 500 terabytes of data stored by businesses.

Amazon's fourth quarter profits were down a massive 57 percent. The company must have realised the high rates it was charging was unrealistically, which in turn ate away its customer base with a lack of uptake.

The cost structure for the services has been brought down from $0.140 per GB per month to $0.125, for the first terabyte of data. The cost for the next 49 terabyte of data stood at $0.125 per GB per month - which has also been brought down to an impressive $0.110.

The executives are of the opinion that keeping high margin of profit for its services is not at all conducive for the company's bottom line.

Amazon has already started seeing the fruits of its pricing policy, where the number of users accessing the S3 storage service has had a three-folded increase last year.

No doubt the Amazon storage service business does not hold a big status among the other businesses the retail giant endorses, however, with the kind of performance S3 has managed to exhibit in the past few quarters, it should amount to some great financial returns for the company.