Amazon sneers at cloud computing market with another price cut

Amazon Web Services has slashed prices again. Is the move a response to vCloud Director or business as usual for the cloud giant?

The Daily Cloud

Amazon cuts EC2 prices again
Amazon Web Services has cut prices on its flagship EC2 service, maybe to remind any hosters tempted to start a cloud on vCloud Director what they're up against, or maybe just because they were having a good day. Either way, the cuts are on the hourly usage rates of potent high memory Double and Quadruple instances, favored by firms looking to run caching applications or next-generation databases. m2.2xlarge instances (High-Memory Double Extra Large) are now $1.00, down from $1.20, and m2.4xlarge instances are down from $2.40 to $2.00.

In business terms, there's a word for the significance of a major producer trotting out roughly 20% price cuts on its core products while under little competitive pressure and seeing booming, sustainable growth: winning.

Taleo buys
Talent recruitment Software as a Service (SaaS) tool Taleo has purchased virtual classroom software firm for an undisclosed sum. builds and hosts SaaS online classrooms for training, both as a "white box" unbranded platform and in partnerships.

It's a sign of cloud consolidation on the move, Taleo said, and there will be more and more of these kinds of buys in specific, easy-to-absorb verticals. SaaS is going first in the big consolidation push, since it was first on the scene in the cloud computing market. Perhaps 2011 will see the start of Infrastructure as a Service (IaaS) vendors getting snapped up.

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