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AWS announces more cloud price cuts in discount war with Google

Amazon Web Services has struck a blow in the battle between the cloud providers by announcing that it will cut its service prices, only a day after Google revealed the same thing.

Maintaining a foot-to-the-floor policy on competitive market strategy, prices for the storage service S3 will be cut by an average of around 51 per cent. Other reductions were announced for platform EC2, which will see prices fall by around 38 per cent.

For older instances of the service, cuts of between 10 and 40 per cent have been earmarked.

AWS' database service RDS will see a drop of 28 per cent on average, while Elasticache prices are set to be slashed by 34 per cent and Elastic MapReduce ones by between 27 and 61 per cent.

Related: Google slashes Compute Cloud pricing

Andy Jassy, head of AWS, writ large about the company's 42nd consecutive price reduction. "Lowering prices is not new to us, this is something we've done 42 times," he said. "You can expect us to do this periodically."

AWS also announced that the firm's desktop virtualisation platform WorkSpace has moved out of testing and is now open to all customers.

Despite the timing of the new cuts, Jassy said that the new drops were not in response to pressure from competitors. Rival firm Google may feel aggrieved though, with the AWS announcement coming only one day after it had revealed that Google Cloud Storage would be receiving a price drop of 62 per cent.

"How many companies call customers and ask them to spend less money with them?" Jassy asked. "Not many."