The Amazon Web Services (NASDAQ: AMZN) cloud-based data warehousing service the company announced at its re:Invent conference in November has now been rolled out to all customers. Previously in beta testing to only a handful of customers, Amazon Redshift has now entered general availability.
Designed to be easy to launch from the AWS Management Console, Redshift is a fully managed, petabyte-scale data warehouse service in the cloud. According to AWS, customers can quickly launch a Redshift cluster that can run in size from a few hundred gigabytes to a petabyte or more. The cost is where Amazon is hoping to attract customers. List pricing is at under $1,000 per terabyte per year—hopefully without any hidden costs.
Additionally, AWS has taken a few shots at traditional data warehousing. The company noted that it takes significant time and resources to manage, whereas Redshift was designed with the simplicity of cloud services in mind. The end goal, of course, is to lower the cost of a data warehouse while simplifying it and making it easy to analyze large amounts of data quickly. AWS claims the pricing comes in at one-tenth of competing data warehouse solutions.
"When we set out to build Amazon Redshift, we wanted to leverage the massive scale of AWS to deliver 10 times the performance at one-tenth the cost of on-premise data warehouses in use today," said Raju Gulabani, vice president of database services at Amazon Web Services, in a prepared statement.
One important question about Redshift remains, and that's in regards to channel opportunities. It's easy for customers to go direct and buy right from AWS, but will Amazon work with partners to resell Redshift or provide opportunities to the channel in another way? AWS has announced several software vendor partnerships and has noted it's working with consultants including Capgemini, Cognizant and Full360, so for now, it looks like the strongest channel opportunity is in consultancy roles, helping customers with their Redshift implementations.
For now, though, it seems that AWS is proving there is a demand for cloud-based data warehousing services within the enterprise space. Even if AWS is exaggerating its "one-tenth the price" claim vs. traditional data warehouse solutions, it seems it's aiming to really commoditize the market and earn business based on dollar signs.