CloudSigma, an international IaaS (Infrastructure as a service) has announced cuts in its computing prices for customers. These cuts are claimed to be the result of improved technological efficiency achieved from its recent public cloud 2.0 upgrade. This claim was put forward to clarify that this price cutting move is not by any means associated with Amazon’s constant price-slashing. CloudSigma has reduced its Ram pricing and CPU pricing by 20% and 15% respectively. The new prices are targeted across all locations for both pay-as-you-go burst and subscription pricing.
CloudSigma’s CEO, Robert Jenkins said in a statement,
.Recently, there’s been criticism over cloud providers’ seeming ‘race to the bottom’ as more and more industry players slash prices to compete with Amazon..
CloudSigma always appear to be very eager about keeping itself distinguished from other giant public cloyud providers including Amazon. Several features and offerings have been brought forward by CloudSigma that reflect the mentioned eagerness of keeping itself apart. These include SSD storage, Ram, unbundled CPU, secure virtual networks and others.
CloudSigma has achieved greatly with the 2.0 cloud’s improved resource management capabilities and higher utilization that is being reflected in the recent price cuts. The upgrade has brought lower latency, less bottlenecks and all solid-state drive (SSD) storage to CloudSigma that has enhanced the performance around 30-40% across the stack for users.
.But, if you look at where AWS started, their price drops have not been in line with Moore’s Law, in terms of increasing compute performance and falling hardware costs, so their margin has actually gone up since 2006. Rather than compete via underlying hardware costs, our custom stack allows us to use innovation to compete in the market. We deliver higher levels of performance on the same hardware, as compared to other providers; so we don’t worry about slashing prices based on the competition, just based on the efficiency gains of our technology..
Other than improved performance and efficiency gain, the price cuts by CloudSigma also reflects another significant trend, i.e. decreasing costs of hardware and a shift from traditional OEM server hardware providers. CloudSigma takes advantage of the reduced hardware costs by purchasing custom tailored hardware. However, the main reason behind CloudSigma’s price cuts and its deliver mode is only the ‘innovation’ factor.