Amazon Web Services Wants To Keep Customers And Cut Prices

Andrew Wagner

Amazon Web Services recently reformed its pricing to save customers money and prevent them from leaving.

Amazon Web Services recently just announced a new discount model intended to save customers money and prevent them from switching to competitors such as Microsoft Azure or Google Cloud, according to The Wall Street Journal.

The new discount model requires customers to make a one or three year commitment for a discounted rate. The new model is called Savings Plans and is Amazon's attempt to hold onto its lead in the cloud-computing market where it is feeling pressure from Microsoft Azure and Google Cloud.

Savings Plans allows customers to save money, but also makes it harder for them to switch to competitors since they are locked into long term contracts with Amazon. Even if they did switch, if they are still under their long term contract Amazon is still charging them.

"This is a big deal," Corey Quinn, cloud economist at a company affiliated with Amazon Web Services, said. "It makes it easier for people to save money and means customers don't have to spend a few days a month with a spreadsheet."

Amazon reformed their pricing model in order to hold onto their lead in the cloud-computing market amid pressure from Google Cloud and Microsoft Azure.

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Economics, Finance and Investing