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This is probably a move in response to Windows Azure dropping its inbound data transfer rates to zero last week. When I was back in Windows Azure, we would often see AWS try to do a price-match whenever we changed prices drastically.

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I know Amazon pays very little attention to competitors. However, their customers might have asked them to lower prices in response to Azure.

I doubt they process customer feedback in the matter of a few days :). Besides, there's a history of AMZN doing things just before or just after a Windows Azure announcement. See their announcements always timed the week before MIX or PDC or the response to various other pricing changes, etc.

Trust me, Amazon keeps a very close watch on the competition. :)

Can't comment as to what AWS does, but Amazon itself pays a ton of attention to competitors, employing things like screen-scraping bots to keep track of competitors' pricing.

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