AWS Reduces EC2 Instance Price by Up to 21 Percent

Amazon Web Services (AWS), announced Wednesday its 61st round price cuts. This will lower the cost of some EC2 Reserved Instances up to a fifth of their original prices.
“Convertible Reserved Instances” will be available immediately for between 5 and 21 per cent less. These three-year-terms allow customers to switch between instance types throughout their contracts. According to Jeff Barr, AWS evangelist, the discount applies to the C4, R4, I3, X1 or T2 instance families.
Here’s an example of how the discount might affect certain instances
[Click on the image to see a larger view.] Price reductions for Convertible Reservation Instances in selected instance families/regions. Source: Jeff Barr/AWS. The company will also offer a “no upfront payment” option to customers who rent Reserved Instances on three-year terms. This option, which allows customers to pay their Reserved Instances in monthly installments rather than in full or with a partial payment, was previously only available to customers with one-year contracts. Customers with three-year C4, M4, and R4 Standard Reserved Instances contracts can now take advantage of this installment plan.
“Our customers use multiple strategies when purchasing and managing their Reserved Instances. Some prefer to make an upfront payment to get a larger discount, while others prefer to pay nothing upfront to get a smaller but still significant discount. Some people are happier with a partial upfront payment, while others prefer a discount that is between the two options. Barr stated that to accommodate this wide range of preferences, we have added 3 Year No Upfront Standard Reserved Incenses for most of the current generation type instances.
Additionally, these Reserved Instances with no upfront costs will be available at a lower cost for both one-year and three-year contracts. Below is a sample of how this discount will impact customers:
[Click on the image to see a larger view.] Estimated price cuts for Reserved Instance contracts with no upfront payments in selected instance families/regions. Source: Jeff Barr/AWS. AWS is reducing the price of its general-purpose M4 instances family by up to 7% for Linux.