AWS Prices Drop Yet Again

This is getting silly.  AWS is once again dropping prices, and adding new services.  “We continue to work to make AWS more powerful and less expensive, and to pass the savings on to you. To that end, I have three important announcements:
  • EC2’s M3 instance family is now available in all AWS Regions, including AWS GovCloud (US).
  • On-Demand prices for EC2 instances in the M1, M2, M3, and C1 families have been lowered.
  • Prices for data transfer between AWS Regions have also been lowered.”

Once again, AWS shows that they are willing to grab market share by sacrificing profits, and that’s a smart move.  As the cloud computing market emerges, those providers that grab the largest shares will find that they are typically able to hold onto that share.  The cost of changing providers will be too expensive for most IT shops.
This should drive additional reductions by AWS’s closest competitors, including Rackspace, Microsoft, HP, etc..  However, AWS will continue to be the market leader.  The price slashing just makes them more compelling.