Amazon Web Services just made it easier for customers to save money on its most popular service – and more difficult to switch to competitors like Microsoft Azure and Google Cloud.
This new model, which AWS is calling Savings Plans, not only makes it easier for customers to save money but makes it harder for them to move onto a cloud competitor. After all, once you're under one of those long-term deals, you could walk away from AWS, but you'd still be on the hook for those cloud bills.
AWS charges customers to use the service in two ways: either paying as they go for the compute capacity they use, or paying in advance for what they think they'll use. The company this week released a new, easier way for customers to pay in advance and, ultimately, save money. It's called a Savings Plan.
Under the new model, customers only have to plan for a minimum amount of spending over the next one to three years. They commit to spending a certain amount per hour, and anything above that just moves to the normal, pay-as-you-go price.Providing discounts helps the platform companies move customers to the cloud and keep them there.
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