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Sunday, January 17, 2016

Microsoft Cuts Azure Prices as Competition with AWS, Google Heats Up

Lately it seems that the cloud market became a game to see who can decide more effectively in competition. The latest trend is Microsoft.

On Thursday, Microsoft announced discounts of up to 17% price DV2 Azure virtual machines, the latest iteration of the D series VM platform.

Microsoft provides an example of reductions that affect their area of ​​the United States 2 (Virginia). For the D1-D5 v2 VM, Windows Server instances receive 10% and cases of Linux price reduction receive a discount of 14%. For virtual machines v2 D11-14, instances of Windows Server will be reduced by 13%, while Linus cases be reduced by 17%. However, the total price reductions for dv2 will take place in February and, at that time

In the blog post announcing the original cuts, Nicole Azure Herskowitz said the reason for the fall in prices was to remain competitive AWS to provide basic services. The position was perceived notable competitive advantage over Microsoft Azure AWS, including free load balancing and auto-scaling for DV2 instances, billing per minute instead of the time, credit for development, and multiple options.

Of course, Microsoft's announcement comes on the heels of Amazon announcing price cuts for some of its AWS services earlier this month. It's part of Microsoft's ongoing that, back in 2013, announced a commitment to match the prices of AWS for 'basic services such as computing, storage and bandwidth. "

Indeed, such price reductions are common to AWS as well. The latest decline 51st marked the company reduced prices since the beginning of its cloud offerings in 2006.

"In my opinion, the fall in prices of AWS continues to attract the interest of new types of cases, keep the brand 'low cost', and, yes, to keep competitors on their toes," said Dave Bartoletti Forrester. "The price war cloud is actually a series of skirmishes soft now."

Do not be left out of the conversation, Google has not responded to AWS cuts with a reduction in its price, but the release of a comparison states that prices 15-41% less AWS in many cases.

The thing is that the cloud market continues to grow. IDC data show that the global SaaS market could reach $ 67 billion in 2018, and applications in the cloud will make 90% of all mobile data traffic next year. However, the public cloud market is still dominated by three players: AWS, Azure and Google in that order.

Search firm Gartner pegs continuously these three as "market leaders" with transparent front rider Amazon, Microsoft in second place, and Google a distant third. Continuous price declines are indicative of AWS and Azure least, price is one of the only ways that can really make a difference, as they tend to offer many of the same tools and services.

AWS is the dominant leader in the space, with some putting its global market share of nearly 37% and other research claiming that AWS was approved by 57% of IT professionals. However, annual growth data released in early 2015 seems to indicate that Microsoft is growing at a rate almost twice that of AWS and Google are not far behind the growth is. If these trends continue, it could mean a much tighter race on the market in late 2016.

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