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July 14th, 2009

Microsoft announces its Azure cloud computing pricing

Posted by Mary Jo Foley @ 7:23 am

Categories: .Net Framework, Azure, Channel, Corporate strategy, Database, Management tools, Red Dog, Resellers, SQL Server, System Center, Systems integrators, Utility/cloud computing, Windows server

Tags: Microsoft Corp., Pricing Strategy, Pricing, Cloud Computing, Virtualization, Storage, Databases, Marketing Research, Marketing, Hardware

Microsoft reconfirmed today that its cloud computing platform will be commercially available this November and unveiled pricing for its Azure components — the base operating system, its hosted database and its messaging service.

At the Worldwide Partner Conference on July 14, Microsoft, as expected, announced prices for customers who want to host their apps in Microsoft’s and/or Microsoft partners’ datacenters. Microsoft also shared more details on its private-cloud positioning during the kick-off keynote at the show on Tuesday.

Here’s the Azure pricing, courtesy of the Windows Azure blog:

Windows Azure:

Compute @  $0.12 / hour
Storage @ $0.15 / GB stored
Storage Transactions @ $0.01 / 10K

SQL Azure:

Web Edition – Up to 1 GB relational database @ $9.99
Business Edition – Up to 10 GB relational database @ $99.99

.NET Services:

Messages @ $0.15/100K message operations , including Service Bus messages and Access Control tokens

Bandwidth across all three services will be charged at $0.10 in / $0.15 out / GB

Microsoft reiterated that Azure will be available via consumption-based pricing. Compute hours will be charged only for when apps are deployed, not during development and testing. Microsoft is advising customers to “remove the compute instances that are not being used to minimize compute hour billing.”

Update: Microsoft also spelled out some of the Service Level Agreement (SLA) terms for Azure on July 14 via the Azure blog post. According to that post:

“To support partners’ and customers’ complex business needs we are providing an enterprise-class guarantee backed by a service-level agreement that covers service uptime, connectivity, and data availability.  For compute, we guarantee that when you deploy two or more role instances in different fault and upgrade domains your Internet facing roles will have external connectivity at least 99.95% of the time. Additionally, we will monitor all of your individual role instances and detect within two minutes when a role instance’s process is not running and initiate corrective action.   For storage, we guarantee that at least 99.9% of the time we will successfully process correctly formatted requests that we receive to add, update, read and delete data. We also guarantee that your storage accounts will have connectivity to our Internet gateway. “

Microsoft is trying to make sure its reseller partners don’t feel cut out of its Azure equation, even though Microsoft is doing much of the hosting. Microsoft is providing its partners with an additional five percent promotional discount on Windows Azure compute, SQL Azure and .NET Services, officials told WPC attendees.

Any initial observations on Microsoft’s licensing and SLA terms?

Update: The Register has a good analysis of Microsoft vs. Amazon consumption-based pricing which shows Microsoft only marginally undercuts Amazon. I don’t think Microsoft is actually offering Azure for free for the next three-plus months, as the Reg says, however. I think Microsoft is just continuing its free tech preview/beta program for its cloud offerings until it takes the “beta” tag off in mid-November.

Roger Jennings, of Oakleaf Systems fame, notes that Azure pricing isn’t competitive with Google App Engine for developers because Microsoft doesn’t appear to offer a free threshhold.

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  • Talkback
  • Most Recent of 46 Talkback(s)
RE: Microsoft announces its Azure cloud computing pricing
I own a company. I make decisions based on bottom line. I expect that I will use Azure for some of my computing needs. It just makes sense.... (Read the rest)
Posted by: wph101larrya Posted on: 07/22/09 You are currently: a Guest | | Terms of Use
Compared to Amazon...  Jouni Heikniemi | 07/14/09
The advantage  Spats30 | 07/14/09
Windows = HUGE Disadvantage  itguy08 | 07/14/09
Your mums basement isn`t an enterprise kid, so...(nt)  NeoGeneration | 07/14/09
RE: the advantage  zdnet-gregc | 07/15/09
I've read your article  Dietrich T. Schmitz | 07/14/09
Not six sigma  diane wilson | 07/14/09
Azure allows hosting of web domains?  sean_hando@... | 07/14/09
My solution message was deleted, why????  sean_hando@... | 07/14/09
Welcome to ZDNET. The Mods are violating CBS' Terms of Use  Dietrich T. Schmitz | 07/15/09
Terms of service also say comments may be deleted at our sole discretion,  In-Action Man | 07/15/09
Sounds like the Gestapo  Ole Man | 07/15/09
Why? You ask why?  In-Action Man | 07/15/09
Azure Cloud: Windows Lock-In  Dietrich T. Schmitz | 07/14/09
RE: Microsoft announces its Azure cloud computing pricing  anitardzg | 07/14/09
Is Azure really that slow?  jim.denny@... | 07/15/09
Why buy a Cloud?  monei011 | 07/15/09
RE: Microsoft announces its Azure cloud computing pricing  kokuryu | 07/15/09
Fully agree  chupchap | 07/15/09
Rethunk is a huuuge mistake  jim.denny@... | 07/15/09
Rethunk...  BL PUMPK9 | 07/15/09
costing model doesn't look right  mashwort | 07/16/09
check your figures again!  werealldoomed | 07/16/09
Azure or Ass-ur ?  bobfox321@... | 07/15/09
Yeah, me, too  evilkillerwhale@... | 07/15/09
That's ?hire, lease, ?rent, or license  Ole Man | 07/16/09
RE: Microsoft announces its Azure cloud computing pricing  R.Baraty | 07/15/09
The Good Old Days ; and upgraded VPN.  Thomas Rippley | 07/15/09
RE: Microsoft announces its Azure cloud computing pricing  dwiddifield@... | 07/15/09
To all the Microsoft Windows haters  General C# | 07/15/09
EXPENSIVE!!  maguilar2k | 07/15/09
I hate...  evilkillerwhale@... | 07/15/09
RE: Microsoft announces its Azure cloud computing pricing  ceh4702 | 07/15/09
RE: Microsoft announces its Azure cloud computing pricing  Tynach | 07/15/09
RE:Microsoft announces its Azure cloud computing pricing  richdave | 07/15/09
Oh good. More licensing that they can yank (and not in a good way) anytime  HypnoToad72 | 07/15/09
Microsoft cloud computing is dead in the water  Charles Norrie | 07/15/09
Blue skies, all of them gone...  bedswerver | 07/16/09
So many ways???  dwiddifield@... | 07/16/09
RE: Microsoft announces its Azure cloud computing pricing  werealldoomed | 07/16/09
Deja Vu all over agin  dnendza | 07/16/09
Cloud is for SMB's  dwiddifield@... | 07/16/09
Hmmm can we say Time Sharing?  rtyii@... | 07/16/09
What about the Tax benefits???  dwiddifield@... | 07/16/09
Pricing begs the question about usage measurement  sebastian@... | 07/19/09
RE: Microsoft announces its Azure cloud computing pricing  wph101larrya | 07/22/09

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