A blog post from Microsoft Azure reveals that customers will see price cuts in the early part of February.
Microsoft’s price cuts follow those announced by rival Amazon, with Microsoft already committed to keeping prices in line with its rival. There will be cuts of up to 17 per cent on Dv2 series Virtual Machines (VM), which offer faster processing speeds than the first-generation D series VM. Both Windows and Linux instances will benefit from the price cut.
Additional capabilities will also be provided for some VM instances. The director of product marketing at Microsoft, Nicole Herskowitz, said that the Microsoft services have built-in features, such as load balancing and auto-scaling, at no additional cost to the customer.
Microsoft has also taken a different approach to calculating a customer’s cloud computing usage. Microsoft’s Azure virtual machines are billed per minute, meaning the only services charged for are those that are actually used. Other companies charge for a minimum of one hour’s usage, even if only a few minutes of the hour are actually used.
Microsoft customers can also make use of pre-purchase plans offering cost savings over a term of one year. The company also wants to offer hybrid cloud services and platform-as-a-service (PaaS) to ensure customers receive good value. Microsoft says that in excess of 50 per cent of infrastructure-as-a-service (IaaS) customers are also looking at PaaS services.
The latest round of price cuts in the cloud computing sector shows that companies are willing to fight on price in addition to the services provided.