ProfitBricks Challenges AWS with Major Price Cut

ProfitBricks Challenges AWS with Major Price Cut

ProfitBricks is stepping up to Amazon Web Services and promising lower costs and the best price/performance in the IaaS industry. Effectively, the company has slashed prices by half.

If ProfitBricks has its way, it's going to lure away Amazon (AMZN) Web Services customers with lower overall price and a better price/performance ratio. The company has cut its prices by half in an effort to content with not only AWS, but all of the other major IaaS providers in the business.

According to ProfitBricks, this price slash puts its IaaS prices at 50 percent of its IaaS competitors. Besides cutting prices, part of what brings the overall costs down is the removal of hidden IOPS costs and the availability of free 24/7 phone and email support, the company noted on its website.

This price cut seems to follow on a general trend in the cloud industry. As we noted a few weeks ago, this "price war" that seems have befallen the industry is really just the ongoing reality of doing business in the cloud, whether as a consumer of cloud services or a cloud services provider or cloud broker.

As cloud continues to evolve and mature, cloud providers are going to continue to try outdoing each other, whether it's by offering something different in terms of service levels or by playing the lowest price game.

"IaaS vendors like ProfitBricks and our competitors have the expertise and the scalability to help customers of all sizes," said Andreas Gauger, ProfitBricks co-founder and CMO, in a prepared statement. "It's always surprised me that companies can outgrow the public cloud. There is no real reason for that to happen other than price, and now we've removed that barrier as well."

Keeping in mind this data isn't exactly unbiased, take a look at what ProfitBricks claims in terms of cost savings over AWS: Based on AWS pricing, ProfitBricks saves customers 45 percent in a one-to-one comparison. The company took an Amazon M1 Medium instance with one core, 3.75GB of RAM, and 250GB of block storage, calculating its cost of 15.5 cents per hour to a monthly fee of $111.40. ProfitBricks noted its own pricing reduces the price to 8.56 cents per hour for a total monthly fee of $61.65.

With the way the industry has been with cloud providers leapfrogging each other in pricing, chances are we'll see a rebuttal from other IaaS providers soon.

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