Thursday, July 25, 2013

CloudSigma Cuts its Cloud Compute Prices

CloudSigma, the Switzerland-based provider of pure-cloud Infrastructure-as-a-Services (IaaS), is dropping its compute pricing for customers to reflect the efficiency gains from its recent public cloud 2.0 upgrade.  Specifically, CloudSigma’s RAM pricing is being reduced by 20 percent and its CPU pricing is decreasing by 15 percent across all locations for both subscription and pay-as-you-go burst pricing.

“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,” said Robert Jenkins, CloudSigma CEO. “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.”