Microsoft has announced, in a blog post, that it will be slashing the cost of some of its Azure cloud services from October 1st.
Claire Fang, Director of Azure Business Planning, said that Microsoft aims to "make it more cost effective to build complete solutions on Azure to leverage the full breadth of our [Microsoft's] technologies".
She also confirmed that customers buying through Enterprise agreements will enjoy even lower prices. The rate card currently shows 63 services being reduced by up to about 40%.
Microsoft sent us this statement: "The price drops on select Microsoft Azure services (announced on September 25) were not a direct competitive move, but were implemented to make these services even more accessible and economical for a broader range of customers."
Economies of scale due to its growing user base (on average 1000 new customers sign for Microsoft Azure and half of Fortune 500 companies use it) and new technologies (like SMR hard drives or new processors), combined with the fact that it is a major cloud user (Outlook.com has more than 400 million active users) allow Microsoft to regularly pass some savings over to its customers.
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