Amazon’s persistent price cutting strategy has forced rivals Rackspace to post a public retaliation arguing that cost is not the most important factor when deciding on a dedicated cloud instance provider.

The blog post, published by Rackspace chief technology officer John Engates on Tuesday, seeks to downplay Amazon’s latest price cuts.

The post claims that AWS see dedicated computing differently to the rest of the cloud computing community and draws comparisons to Rackspace’s own dedicated instances.

Specifically, Engates claims that AWS EC2 dedicated instances are different because they run on the public cloud, while Rackspace’s, he writes, are “completely isolated from the public cloud and run on your own hardware with your own network, and you have your own storage.”

EC2 dedicated instances also run on a companies own hardware but are connected to Amazon’s public cloud.

“You’re just a dedicated, single-tenant slice of that cloud. If the AWS public cloud suffers an outage, you will be affected. Plus if you need additional block storage, you’re back to multi-tenancy with Amazon’s elastic block storage,” he says.

He also argues that Rackspace dedicated servers can be significantly customised with the operating system, storage, CPU type, memory and network speed of a companies choice, whereas specs of EC2 dedicated instances are pre-packaged with no option of customisation.

On price, Engates said: "A lower unit price doesn't always mean lower costs overall. Nor does it always deliver value when one considers an apples-to-apples comparison of performance and support. We at Rackspace don't aspire to offer the lowest unit prices."