Only in the Cloud… Active and Passive Savings

File this one under “amazing but true.”

Today Amazon Web Services customers awoke to find their prices have been lowered for EC2, RDS and Elasticache.

All standard EC2 customers get a 10% discount. This is for doing absolutely nothing. Didn’t have to write more code, didn’t have to plea-with/strong-arm a sales rep, didn’t have to threaten to change vendors. This is the promise of the cloud. A system running on AWS yesterday now costs 10% less to run today.

For AWS customers who “meet Amazon in the middle” … i.e. “you do some work, Amazon does some work,” the savings are more dramatic. Reserved purchase reductions range from 37% to 41%. This is the other positive aspect of the cloud: As a cloud customer, if you are willing and capable to make changes in small increments, savings will add up. The cloud has a continuous history of price reductions in the form of new features and service derivatives. But in order to take advantage you have to write code. S3 Reduced Redundancy is a good example. It’s a flavor of S3 that has a lower price and lower durability. But it’s perfectly fine for storing objects that are less important. But you need to write code to take advantage of this storage class.

The cloud has the dual concepts of “passive savings” and “active savings.”