(Adds announcement from U.S. Department of Defense)
By Deepa Seetharaman
SAN FRANCISCO, March 26 Amazon.com Inc
will drop prices on most of its cloud computing services
starting April 1, the largest U.S. online retailer said on
Wednesday, a day after rival Google Inc outlined a
major price cut of its own.
The price cuts range from 10 percent to 65 percent, Andrew
Jassy, senior vice president of Amazon Web Services, told a
conference for Amazon web developers in San Francisco.
This marks the 42nd price reduction for AWS since its
introduction eight years ago. In a separate press release on
Wednesday, the company said the U.S. Department of Defense
deemed Amazon's cloud computing service secure enough to be used
more broadly within the department.
AWS provides the underlying infrastructure for popular Web
companies such as online movie streaming service Netflix Inc
and social network Pinterest.
Cloud services have become increasingly popular among both
cash-strapped tech startups and larger companies, which rely on
computers owned and operated by the likes of Amazon and Google,
the world's No. 1 Internet search engine, instead of buying the
Amazon, which pioneered public cloud computing in 2006,
remains a dominant force in the industry. Its fast-growing AWS
business helped transform the company from traditional online
retailing into a tech industry giant, and is often cited by
investors as a major pillar of its future growth.
But others are making inroads. Earlier this week, Cisco
Systems Inc announced plans to spend $1 billion over
the next two years to build a new cloud services business.
AWS has five times the computing power of its 14 rivals
combined, Jassy said during his keynote address, citing an
analysis that industry consultancy Gartner published last
"When you look at all those capabilities, they don't exist
anywhere else," Jassy said.
(Reporting by Deepa Seetharaman; Editing by Stephen Powell,