Amazon Web Services Delivers Continual Cost Savings, TSO Logic Study Reveals

Research shows costs of Amazon’s Cloud has dropped by as much as 73% over the past four years

VANCOUVER, British Columbia, June 21, 2018 (GLOBE NEWSWIRE) -- Amazon Web Services (AWS) cloud resource costs have dropped by as much as 73% over the past four years, according to new research conducted by TSO Logic. The research indicates that an expanding AWS catalog, plus the creation of Reserved Instances pricing, have been significant drivers in the overall cost reduction of AWS cloud resources.

AWS has announced price cuts more than 60 times over the last few years. However, the new research from TSO Logic is the first to quantify these price declines using an anonymized data set of enterprise servers. They ran the data through their predictive analytics engine using current and historical AWS pricing catalogs. The result is a comparison of running like-for-like workloads on Amazon’s cloud today versus the previous four years.

Steadily Declining Cloud Costs

Since 2014, the cost of running like-for-like workloads using the On-Demand payment model has dropped by at least 57%. When the same workloads are converted from On-Demand to Reserved Instances, which were introduced in 2016, the savings grow to 73%. Evaluating only the more recent period since 2015, the cost of running the like-for-like workloads using the On-Demand payment model declined by 14%. When converting to Reserved Instances pricing, costs fell by 46%.

Time Period2017 Cost Savings, On-Demand
Only (Assumes No Conversion to
Reserved Instances)
2017 Cost Savings when Assuming
Conversion from On-Demand to
Reserved Instances*
2014 – 201757%73%
2015 – 201714%46%

*Conversion from On-Demand to Reserved Instances assumes a three-year contract, paid upfront, provisioned in AWS US West.

“The AWS catalog continues to expand and is filled with nuances,” said Aaron Rallo, Chief Executive Officer of TSO Logic. “By applying data science and analytics to find the best configurations for your compute and licensing footprint, organizations can slash their AWS spend by at least 36 percent.”

Click here for additional details about TSO Logic’s study.

About TSO Logic
TSO Logic provides the most accurate data-driven recommendations to right-size and right-cost compute. Their platform shows the actual performance, utilization and total cost of ownership of current on-premise environments and cloud alternatives, so organizations can optimize spending and develop a data-backed business case for change.

For more information, contact:
Andrea Majorki
+ 1 604.424.4150 ext. 107

Photos accompanying this announcement are available at

TSO Logic_Graphs_4x7_Assuming_Conversion_300-02 TSO Logic_Graphs_4x7_WO_Conversion_300-01