March 18, 2012

Amazon Pressures Web Service Prices Lower

Dina Bass, Bloomberg


AP Photo

Amazon.com Inc. (AMZN), which dropped prices on its Internet-based cloud-computing service last week, said it will keep cutting when it can, putting pressure on competitors like Microsoft Corp. (MSFT) to keep its own prices low.

Customers of Amazon’s EC2 service, which lets clients run their programs on the online retailer’s server computers, saw price cuts of as much as 37 percent on March 5, and other Amazon cloud service prices were trimmed as well. Microsoft responded days later with reductions on its rival Azure services.

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