On the heels of Amazon Web Services announcing plans to start charging its customers by the second, Oracle is shooting back at AWS with its own new flexible pricing model.
The moves represent a new burgeoning front in the battle to lure customers to the cloud as adoption has been stymied at many organizations because of cost. Analysts, who note that the efforts by both companies are also aimed at enhancing cloud performance, expect the new pricing models to ramp up competition between two established leaders in the cloud industry.
During an event hosted at the company’s headquarters, Oracle this week introduced new programs to lower costs and increase flexibility for its cloud products.
Specifically, Oracle is rolling out a program called “Universal Credits” that allows customers to have access to any of its platform-as-a-service and infrastructure-as-a-service options. Oracle is also allowing customers to reuse existing software licenses for Oracle PaaS, including Database, Middleware and Analytics.
Oracle said the programs are set to give customers on-demand access to all of the Oracle’s cloud services without having to notify the company when switching between platforms describing its “Universal Credits” initiative as “the industry’s most flexible buying and consumption model for cloud services.”
Oracle Chairman Larry Ellison said the new offerings will improve and simplify the way cloud is purchased and used.
“We combined the lowest prices with the highest performance and more automation to deliver a lower total cost of ownership for our customers,” Ellison said in a statement.
Oracle’s announcement comes just days after AWS introduced its biggest pricing structure change in years. Taking a granular approach to try and save customer’s money, AWS said it would start charging customers on a per-second basis for its EC2 cloud services.
Historically, AWS has billed by the hour for its cloud services. Direct competitors such as Google and Microsoft Azure, however, charge by the minute for its cloud services.
AWS Chief Evangelist Jeff Barr said that by “billing usage down to the second we will enable customers to level up their elasticity, save money, and customers will be positioned to take advantage of continuing advances in computing.”
“Many of our customers are dreaming up applications for EC2 that can make good use of a large number of instances for shorter amounts of time, sometimes just a few minutes,” Barr wrote in a blog post announcing the new pricing structure.