VMware will hate this: Amazon slashes cloud prices up to 28 percent

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OH MY GOD, Amazon’s having a FIRE… sale . This is bad for business! 20th Century Fox Television Last week, VMware’s top executives displayed just how worried they are about the competitive threat posed by Amazon’s cloud computing service. With customers able to spin up virtual machines in Amazon data centers, VMware is concerned fewer people will buy its virtualization tools. According to CRN , VMware CEO Pat Gelsinger told service partners at the company’s Partner Exchange Conference that if “a workload goes to Amazon, you lose, and we have lost forever.” VMware COO Carl Eschenbach jumped on the Amazon theme, saying, “I look at this audience, and I look at VMware and the brand reputation we have in the enterprise, and I find it really hard to believe that we cannot collectively beat a company that sells books.” Given VMware’s view of Amazon, Gelsinger and Eschenbach won’t like the latest news from the “bookseller,” which also happens to be a large IT services provider. Amazon today announced price reductions of up to 27.7 percent for Elastic Compute Cloud Reserved Instances running Linux/UNIX, Red Hat Enterprise Linux, and SUSE Linux Enterprise Server. Reserved instances requiring up-front payments already provide discounts over “on-demand instances,” which can be spun up and down at will. Using reserved instances requires a little more advance planning to make sure you get the most bang for your buck—although customers who buy more than they need can sell excess capacity on Amazon’s Reserved Instance Marketplace . Read 7 remaining paragraphs | Comments

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VMware will hate this: Amazon slashes cloud prices up to 28 percent

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