Amazon announced yet another price drop on its S3 Storage Service as its Web Services continues to change how cloud computing is done.

A new 25 percent price drop was announced by Andy Jassy, SVP of Amazon Web Services, at the company's first ever global customer and partner conference this week. Jassy showed off the power of AWS at the re:Invent conference in Seattle, and used the stage to announce the price drop, and a new data warehousing product called Redshift. 

Amazon Simple Storage Service (S3)

Amazon Web Services is only six and a half years old, but it has hundreds of thousands of customers, including over 300 government agencies and 1,500 educational institutions. Jassy also highlighted the recent launch of AWS Marketplace, an online store where third party software is sold and can be connected directly to AWS in one place.

But for those who use the combined computing power of the S3 system, the big news is that effective December 1, the US East standard region pricing goes down by 25 percent.


As the AWS cloud grows, prices come down because of the combined compute power of added servers. 

Amazon S3 runs an average of over 800,000 requests per second, Jassy said, and the company now adds more server capacity daily at an expanding pace. In 2003, Amazon retail was a US$ 5 billion business. Now Amazon adds as much compute power every day as was needed for the entire retail side back then.

The company's newest compute infrastructure is in Australia, and companies of all kinds are using AWS. NASA's Jet Propulsion Laboratory used the AWS system to simulcast is Curiosity rover landing on Mars back in April, for example. The ability to beam live information around the world, while at the same time only using as much compute power as was needed was a key to NASA's latest success, Tom Soderstrom, IT CTO at NASA/JPL told the re:Invent audience.

Redshift Promises 10x Cost Reduction in Big Data Analytics

Jassy also announced Amazon's new analytics database, Redshift. The system is available now in limited availability with a wider release in 2013.


Amazon Redshift MPP architecture comes in 16TB local disk/128GB RAM or 2TB local disk/16GB RAM nodes.

Redshift comes in an on-demand variant as well as one and three-year reservation versions. The three-year reservation promises the most cost savings, Jassy said, with hourly prices of US$ .23 for the 2TB node and US$ 1.82 for the 16TB node.

As for an analytics use case on AWS, none other than SAP was on hand to tout the power of the cloud. SAP's HANA One runs on AWS, and the platform has grown quickly in its first few weeks after launch. It already has over 1,000 customers, and there is a free developer's edition to encourage businesses to try out the system.

Google upgraded its own cloud platform only a day before re:Invent began, and now the Amazon price cuts will likely keep them on their toes. Amazon has a big lead over Google in cloud computing, and as both companies' services expand this may be the biggest IT battle of all.