Watch out — there’s a new cloud in town. Amazon (NASDAQ:AMZN) just released their cloud-based data warehouse service Redshift to the general public after a successful limited release last November. Its target consumer base is start-ups and larger enterprises, and it’s garnering raves due to its cost efficiency, which is about one-tenth of most of its competitors.
“When we set out to build Amazon Redshift, we wanted to leverage the massive scale of Amazon Web Services to deliver ten times the performance at one-tenth the cost of on-premise data warehouses in use today,” explains Raju Gulabani, VP of database services, AWS. “With order of magnitude improvements in price/performance, Redshift makes big data analytics accessible to more people, allowing large organizations to analyze more of their data and smaller ones to afford fast, scalable data warehousing technology.”
Users can purchase a single 2TB data warehouse or cluster of 16 2TB nodes or 16TB nodes, which are called High Storage Extra Large (NYSE:XL) and Storage Eight Extra Large (8XL). Also available are 15GB or 120GB of RAM.
On-demand pricing begins at $0.85 per hour for an XL node and $6.80 per hour for an 8XL node, while reserved instant pricing reduces the cost to approximately $0.228 per hour or under $1,000 per terabyte per year. When Redshift was first announced, the typical cost of an equivalent solution was $19,000 to $25,000 per terabyte.
Here’s a snapshot look at how Amazon has traded in 2013: