Amazon responds to Azure pricing cuts by slashing own outbound and inbound data rates

Amazon have crushed their AWS (Amazon Web Services) pricing, in response to Microsoft’s changes to the Azure data transfer rates.

Last week Microsoft announced that inbound traffic to its Azure cloud platform – useful for all kinds of purposes, but most expensive when uploading or transferring data from other sources – would become totally free from the end of June.

In response, Amazon has lowered the price of all data transfer into its Amazon Web Services platform to free also.

“Effective July 1, 2011, customers will not pay for any inbound data transfer. Plus, we are slashing our pricing in each tier for outbound data transfer” writes the AWS team on their developer blog. “There is no charge for inbound data transfer across all services in the US and Europe. That means, you can upload petabytes of data without having to pay for inbound data transfer fees.”

“On outbound transfer, you will save up to 68% depending on volume usage.”

The first gigabyte of outbound traffic from AWS is also now free, and you won’t be charged until you go over 1GB in a one-month period. This means that, in combination with a micro-sized AWS instance, it is possible to keep costs to zero on AWS. Is this the start of a cloud pricing war?

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