A new group called the Bandwidth Alliance reportedly launched on September 26 is taking on the biggest competition in cloud computing services, Amazon’s AWS, with a low pricing pact. The alliance includes some of the biggest names in the tech market such as Microsoft Azure, IBM Cloud, Backblaze, Packet Host Inc, and Digital Ocean.
The alliance is focused on drawing AWS customers away and attracting them to the newly launched alliance. AWS being the biggest cloud-computing provider with record revenue of $17.5 billion in 2017 levies a fee from its customers for moving data out from AWS cloud, however, they do not charge anything when the same user moves data into the AWS cloud.
The newly launched alliance will allow the cloud users to use the supporting service seither at a low rate or no cost at all, essentially, ditching Amazon. Matthew Prince, the CEO of founding member Cloudflare said that the new alliance would offer services that give a feel of Hotel California. The hotel is known for great services, which are hard to resist. People using the services of Bandwidth Alliance will be reluctant to move away to some other service provider.
The newly formed group will allow cloud users to freely move their data between their services for free. The provision of free movement is restricted to the companies that are part of the group. Microsoft, which is also a part of the group, will levy a discounted fee. The company noted that it might levy 75% of the listed price for using its cloud services which is still better than paying a huge amount for moving data outside AWS. Alphabet Inc’s Google Cloud will be another company that will offer discount on cloud services to the customers through a previously established program with Cloudflare and others.
The alliance is the result of a more personal motive. The companies that have joined to form the group are actually strong competitors of Amazon. They want to surpass AWS through the alliance offerings and make their presence count.
Although the alliance is in direct competition with Amazon, the company has not yet commented on it. However, Amazon has reportedly signed deals with companies to allow its customers to move data freely. The move is believed to be in line with the recent development. One of the companies that Amazon is alleged to have entered a deal with is Salesforce.com that will allow customers to transfer data freely. Earlier this week, Adobe Systems Inc, Microsoft, and SAP SE made a similar deal to share mutual customer data.
Prince hinted at plans to split Bandwidth Alliance from the group if the alliance gets the traction over the time. The aim of the movement is to make cloud services available at cheaper cost. This would make it easier for the customers to pick their providers and move their data freely from one data center to another, according to a statement by Prince.