So, almost exactly one month after Google launched their App Engine, Amazon Web Services (AWS) have announced a considerable bandwidth price reduction. Google’s rival to AWS is still only in a closed beta release stage, but it has nonetheless already impacted positively on the breadth of options available to programmers - and now also contributed to reducing costs.
Amazon are unlikely to openly concede that their price cut is a response to the launch of Google’s free rival, but there can be no doubt that the reduction will make AWS more competitive against the GAE (N.B. the AWS price cuts are significant; heavier users could save somewhere in the region of 25%).