Amazon Cloud Services (AWS) will begin charging customers on per-second basis. The leading public cloud provider announced that the change will begin from October 2, 2017.
Companies will pay less for certain workloads on account of the per-second pricing.
Moreover, it will lead companies to become more experimental while using EC2 for some types of computing.
AWS was charging on hourly basis since its inception in 2006. It will charge customers only for use of computing resources, with a one-minute minimum.
Amazon’s competitor, Google stated that it would begin charging its customers on per-minute basis. Microsoft’s Azure followed the strategy thereafter.
Jeff Barr, AWS’ chief evangelist wrote in a blog post, “The price change is only applicable for Linux virtual machines.”
Reduction in price is one of the common strategies used by Amazon to compete with other cloud infrastructure providers such as Google and Microsoft. Other strategies include opening up more data centers around the world and including new services.
“Many of our customers are dreaming up applications for EC2 that can make good use of a large number of instances for shorter amounts of time, sometimes just a few minutes,” said Amazon’s Jeff Barr in a blog post.
AWS generated a $916 million operating margin in its $4.1 billion overall revenue in the second quarter of 2017. According to Canalys, Amazon had 30.3 percent of market share in the cloud infrastructure services industry. It has emerged as the leader in the space, followed by Microsoft Azure and Google Cloud.
The move is part of the strategy to gain more market share by lowering prices.