Is Amazon making life difficult for competitors?
Amazon boasts that this is its 40th price cut since launching EC2 in 2006, a relatively meaningless statistic. The question is, cut prices where and how much? In this case, the answer is on the competitive storage front. AWS cut EBS block storage by 50%. Remember, Google dropped I/O charges and cut its Persistent Disk prices 60% on Dec. 3 in a bid to get into more serious contention for cloud custolmers. Persistent Disk is Google's equivalent to EBS.See http://www.informationweek.com/cloud/infrastructure-as-a-service/google-compute-cloud-challenges-amazon/d/d-id/1112900. So is Amazon, with this move, making life difficult for competitors. Or should it be more worried about investors?