Australia Short-Changed Again By Amazon Cloud Price Cuts

Amazon has dropped the charges for some of its EC2 cloud services. Price cuts are always welcome, but yet again prices in the Australian region haven't fallen at the same level as other markets.

Photo: David McNew/Getty Images

In a post on the Amazon Web Services blog, the company details cuts in pricing for EC2 Reserved Instances on various Linux platforms. Here are the percentage price cuts across Amazon's m1, m2, m3 and c1 tiers:

Region m1 m2 m3 c1
US East (Northern Virginia) 13.0% 23.2% 13.2% 10.1%
US West (Northern California) 13.3% 27.7% 13.3% 10.0%
US West (Oregon) 13.0% 23.2% 13.2% 10.1%
AWS GovCloud (US) 0.6% 13.9% 1.1% 2.1%
Europe (Ireland) 13.3% 27.7% 13.5% 10.0%
Asia Pacific (Singapore) 4.9% 19.8% 4.9% 2.4%
Asia Pacific (Tokyo) 4.9% 20.8% 5.0% 2.2%
Asia Pacific (Sydney) 4.9% 19.8% 4.9% 2.4%
South America (São Paulo) 4.9% 21.1% 4.9% 0.0%

Amazon's Sydney instance has had higher costs than US sites ever since it launched, but the effect of the price cuts is generally to exaggerate those differences even more. A similar pattern was evident in cuts to data transfer rates earlier this year. The lesson? There's no sign that local pricing is going to match up with US options any time soon.


    Before anyone starts accusing AWS of gouging the local market the way software vendors have, I think it's pertinent to mention that their local pricing is just a reflection on the costs associated with upkeep of a data centre here. Their rent, data costs, personnel costs etc may all be higher.

    Before they launched here I was told by more than one AWS rep to expect prices to be significantly higher than they ended up being.

    As to why they haven't reduced the local prices along with the rest of their regions? Well, it's only been open a couple of months, I imagine they're still a long way off recouping their capital expenses.

    Last edited 06/03/13 4:11 pm

    And does anyone really care?

    Most sites and apps (even Australian-oriented ones) inevitably run in US-East. That's why the entire internet shuts down whenever the power goes out in Virginia.

    The point of AWS is to let you put your IT infrastructure anywhere in the world. Some places will have higher datacentre operating costs so it's only fair that AWS charge differently for each region. Companies can choose which is more important - close infrastructure or low cost.

    I think we should be grateful that AWS even has an AU region. Most other providers don't - Rackspace only seems to be doing dedicated bare-metal in Sydney, HP only have one availability zone at present, and so forth.

    And hell, even if you do use AWS Sydney, it's probably a gagillion times cheaper than using any of the local competitors (ISPs).

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