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Amazon Web Services drops cloud prices…again

Amazon Web Services has lowered the price of its second-generation standard instances by 10% across the board, continuing the downward trend of IaaS pricing.

The EC2 M3 instances, which debuted last November, triggered a price reduction of the previous generation of instances when they were launched. Now that second generation is seeing prices fall.

The AWS Blog cited two examples of the 10% price cut this morning: the m3.xlarge on-demand instance was $0.50 per hour, and is now $0.45 cents per hour. The m3.2xlarge on-demand instance was $1.00 per hour and is now $0.90 per hour. Reserved EC2 M3 instances are now 15% cheaper, too.

Even as Infrastructure as a Service (IaaS) providers continue to cut cloud pricing in an effort to lure new customers, it’s not clear just how many IT shops will take the bait and move away from their current cloud computing deployment plans because of a 10% price reduction. Cloud pricing is just one of the many factors that go into the service provider selection process.

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