Commoditization and the Cloud: Bypassing the Race to the Bottom

Amy Larsen DeCarlo
Amy Larsen DeCarlo

Summary Bullets:

  • Last month, Amazon Web Services cut EC2 prices for the 19th time since it launched its flagship service, reflecting the ongoing race to the price floor that so many IaaS providers are pursuing.
  • At what point do these reductions cut into service quality and features, or has that already happened?

In recent weeks, everyone from Amazon Web Services and Microsoft to Rackspace has either slashed pricing for cloud offers or promised to beat their rivals’ prices.  There is no doubt that this competitive pursuit of business customers is sweetening the cloud’s appeal to the point where even the most reluctant of prospects have no choice but to consider their on-demand options.   However, all the battling to win the title of ‘Cloud Price Chopper King’ is also producing an unwanted result: the perception that the cloud is all about price.  This leads many businesses to wonder if there is any differentiation at all between and among mass-market public cloud solutions. Continue reading “Commoditization and the Cloud: Bypassing the Race to the Bottom”