Microsoft is keeping up to its promise of matching the price of Amazon for its Windows Azure services. As Amazon announced price reductions last week, Microsoft followed up with theirs today.
Consistent with our previously announced commitment to match Amazon on prices for commodity services, we are cutting prices on compute by up to 35% and storage by up to 65%. We recognize that economics are a primary driver for some customers adopting cloud, and stand by our commitment to match prices and be best-in-class on price performance.
Microsoft has also announced new Basic instance,
On April 3, we will introduce a new tier of General Purpose Instances called “Basic” (A0-A4) that offers similar machine configurations as the Standard tier of instances offered today (Extra Small [A0] to Extra Large [A4]). These instances will cost up to 27% less than the corresponding instances in use today (which will now be called “Standard”) and do not include load balancing or auto-scaling, which are included in Standard. These instances are well-suited for production applications that do not require the Azure load-balancer (“bring-your-own load balancer” or single instance), development workloads, test servers and batch processing applications. Basic instances will have similar performance characteristics to AWS’s equivalent instances while the Standard instances will maintain their favorable performance. The Basic instances become available for use starting April 3, and comprehensive pricing information will be available on the Virtual Machines Pricing Details.
Read more about it here.