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Blog May 19, 2014

AWS Price Reductions- What Should You Do with the Savings?

The cost of cloud computing has been dropping over the last 5-10 years. Just take a look at all the news coverage of Amazon Web Services (AWS) price reductions since 2006. While cloud computing is becoming more affordable, these price reductions are only a fraction of the story. Managing and supporting the AWS environment can be complicated and confusing for most organziations. Even if you’re familiar with designing web apps, software, websites, and other products that take advantage of AWS cloud computing, it can be helpful to use the savings and hire a third party to optimize and manage your cloud instances.

Eight years of cloud computing price reductions

Back in 2010, Netflix moved its service over to Amazon EC2 and they haven’t looked back. They took advantage of the savings already available with AWS and the prices have dropped several times since then. All in all AWS has had 42 price reductions in the last 8 years. Most recently AWS announced a 51% cut to its S3 storage and 38% its EC2 M3 compute instances.

Reinvesting the Savings

These savings are particularly good news for businesses that have been considering a jump into cloud computing, but don’t have the experience to optimize and manage EC2 instances. The savings can partially cover the cost of hiring an AWS monitoring and consulting service that will take care of your AWS support for you. Website owners and developers that are more comfortable with cPanel don’t have to learn to manage their own servers in the cloud when they move to AWS.

For example, if you were running a small cloud server with AWS back in 2006, you would have paid $0.10/hour. Over the course of a year, that’s $876. Today, that same service would cost $788.40. Similarly, the high-memory, quad-core, large instance would cost $2.40/hour back in 2009, or $21,024/year. Today, that instance will cost $17,520. Those savings can be directed to service providers skilled in optimizing and managing your EC2 instances for even greater savings that comes with a properly managed AWS system.

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