Amazon Web Services (AWS) may be a leader in the cloud technology for now but the other three giants- Microsoft, IBM, and Google are slowly catching up. In a bid to stay ahead and target even the lower rung of users, AWS has now launched a new pricing model called Scheduled Reserve Instances.
Most of the users of cloud technology never use the service for all days of the months or whole 24 hours in a day and only run them on a periodic or part-time basis. Thus, schedule Reserved Instances will allow the users to reserve capacity on a recurring basis with a daily, weekly, or monthly schedule. However, it will be available for those who have registered for at least one year use of AWS services.
While announcing the new pricing model via a blog post, Chief Evangelist for the Amazon Web Service, Jeff Bar also gave examples of use-case scenarios for such kind of a pricing model.
He pointed towards users such as banks or mutual funds which bank or mutual fund which perform Value at Risk calculations every weekday afternoon; a trucking company optimizing routes and shipments on Monday, Wednesday, and Friday mornings; a phone company doing a multi-day bill calculation run at the start of each month or an animation studio performing a detailed, compute-intensive 3D rendering every night.
AWS will offer 5%-10% discounts depending on the days of the usage, i.e, 5% on the peak days or peak hours and 10% on the weekends. This model is currently available in the US East (Northern Virginia), US West (Oregon), and Europe (Ireland) regions, with support for the C3, C4, M4, and R3 instance types.
With the scheduled reserved instances, there are now two Reserved Instances in AWS. The original Reserved Instance, which is now called Standard Reserved Instances, allows the users to reserve EC2 compute capacity for a one or three year term and use them at any time.
AWS has been making its services more affordable for quite some time now, in order to compete with the rising strength of other cloud services providers.
In the beginning of this year itself, Amazon announced its 51st price cut by offering five percent off C4, M4, and R3 reserved instances, on-demand instances and dedicated hosts running Linux across regions in the US, Asia Pacific, and Europe.
This did not go too well with Google who responded through a blog post claiming that Google Cloud Platform was still the price/performance leader in the public cloud.