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Summary:

Amazon announced today that it will cut prices for its Amazon S3 (Simple Storage Service) offering on Nov. 1. The company is essentially offering people who use more storage significant volume discounts. For folks using up to 50 terabytes of storage, the price cuts don’t make much […]

Amazon announced today that it will cut prices for its Amazon S3 (Simple Storage Service) offering on Nov. 1. The company is essentially offering people who use more storage significant volume discounts. For folks using up to 50 terabytes of storage, the price cuts don’t make much of a difference. In the U.S. they pay 15 cents per gigabyte; in Europe, 18 cents. If you go above 50 terabytes, the price declines by a penny and if you cross the 100-terabyte mark, you see another penny-per-gigabyte decline. After 500 terabytes your price is going to be 12 cents a gigabyte in the U.S. and 15 cents in Europe.

At present you pay 15 cents per GB/month of storage used, regardless of the amount of storage consumed. The current cuts don’t impact the pricing for data transfers and requests made to the Amazon S3 system. Nevertheless, this is still going to save some dollars for startups that are using the S3 service. Amazon, in making the announcement, gave some interesting data points:

* Currently there are over 29 billion objects stored in Amazon S3 vs. 22 billion at the end of Q2 2008. That is sequential growth of 32 percent.
*On Oct. 1, the service peaked at over 70,000 requests per second to store, retrieve, or delete an object.
* Over 400,000 developers have registered to use Amazon Web Service.

What I was most amazed by was the sheer variety of companies that are using the S3 offering. For instance:

* National Geographic’s topo.com uses S3 to sell maps, download updated trail and trip information and even create trip maps to share with their friends.
* Sonian uses it for large-scale content archiving for things like email compliance.
*Indycar.com and indy500.com utilize Amazon Web Services for web hosting, live video streaming, and live timing and scoring applications.

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  1. Wayne Lambright Thursday, October 9, 2008

    I like the s3/ec2. The only thing that keeps me from ditching my servers is that bandwidth on there system is nearly 4 times the going rate.

  2. Amazon is definitely leading the way by providing cloud storage for companies, however, I as a competitor to Amazon S3 feel that their prices are still way too high. The cost of hard drives have dropped significantly yet (a 1TB SATA HDD now costs $100 on newegg, it used to cost $200 about 6 months ago) and Amazon only managed to reduce the costs for their top tier customers.

    My company, MyBloop, offers storage for businesses at much lower prices than Amazon S3. We’re based in the NY/NJ area and are expanding within our area first. Our service is fast (dedicated pipes to prevent fluctuating speeds in downloads as in S3), reliable (data centers in NY and expanding to NJ), and we’re green. We hand build all our machines to make them as cost effective and energy efficient as possible.

    We’re expanding our program to a couple other businesses slowly as we grow our efforts. We’re no Amazon right now in terms of sheer size however we’re making good progress by offering all of the above as well as better prices than Amazon S3.

    Having said that, if any businesses out there are finding S3 to be too expensive and would like to test out migrating small amounts of their data over to our faster service, please send over an email at fitim@mybloop.com. We’ll be opening it up for public signup in the short future.

    Thanks.

    (I posted this same comment on TechCrunch a little earlier, I read both blogs.)

  3. Amazon S3 moves to volume pricing model « Storage Effect Thursday, October 9, 2008

    [...] Om Malik sees the pricing change as a boon for start ups.  He’s right, too, about their amazingly diverse customer base. [...]

  4. This doesn’t make a difference for most companies. How many companies have 50TB of data to store? So this is no news really. Also their bandwidth costs are too high. BTW, we have been using S3 almost from its launch. But let’s not make a big deal of this.

  5. Amazon S3 Cuts Prices : Beyond Search Thursday, October 9, 2008

    [...] article summarizes the data about the “success” of AWS. You can read the story here. I tucked this article in my Amazon folder. I am still waiting for Amazon to produce hard data [...]

  6. Amazon senkt die Preise für S3 « Authsider Friday, October 10, 2008

    [...] Om  Malik: Amazon Cuts Prices on S3 [...]

  7. I am in the same boat on these price changes – disappointed at the lack of aggressiveness. I started looking at S3 2 years ago and couldn’t justify the price. Now storage is about 25% the cost of what it was 2 years ago and their price is basically the same. I really love the service, but I can’t see the costs as realistic. The big killer IMO is that if you use this to project future price drops it will become even less attractive over time.

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