Amazon Web Services (AWS) reduced the price of dedicated instances on its cloud-computing platform by up to 80 per cent yesterday.

Customers in all regions will now be charged $2 per hour instead of $10 per hour for dedicated per region fees, alongside the standard EC2 fees.

The significant price cut follows a chain of reductions that AWS has introduced over the years.

Amazon said: “Today’s price drop continues the AWS tradition of exploring ways to reduce costs and passing on the savings to our customers.”

The changes come into effect as of 1 July and Amazon said it would automatically adjust customer bills.

Dedicated instances are more expensive than traditional EC2 instances because they run on single-tenant hardware that is used by just one customer.

Amazon claims its dedicated instances are well suited for running workloads that have to be isolated at the hardware-level from instances belonging to other customers, due to corporate policies or industry regulations.

In addition to cutting the region fee, Amazon is also decreasing the price of dedicated on-demand instances that can be used by customers who don’t want to commit to a contract by up to 37 per cent.

As an example, Amazon said the price of an m1.xlarge dedicated instance in the US East region will drop from $0.840 per hour to $0.528 per hour.

The Amazon EC2 instance family was launched in January and is designed for memory-intensive applications such as in-memory analytics, databases, caching, and scientific computing.

For a complete list of dedicated instance prices visit the Amazon EC2 dedicated instances page.