Crazy Thursday! Alibaba Cloud officially announced the largest price reduction in history

This morning, Alibaba Cloud announced the largest price reduction in history.

Alibaba Cloud has adjusted the official website prices of its full range of cloud products, with an average price reduction of more than 20%, and some product prices have dropped by as much as 55%. This price adjustment involves more than 100 products and more than 500 specifications, covering core cloud services such as computing, storage, and databases.

The price reduction policy is implemented in the form of direct price reduction on the official website and is applicable to all new and old customers who purchase on the official website. The highest decline rates for core products such as cloud server ECS, object storage OSS, and cloud database RDS reached 36%, 55%, and 40% respectively.

Whether they are large enterprises or small and medium-sized enterprises, new and old customers can place orders directly at the new price on the Alibaba Cloud official website.

Liu Weiguang, senior vice president of Alibaba Cloud Intelligence Group and president of the Public Cloud Division, said:

As China's largest cloud computing company, Alibaba Cloud hopes that through this large-scale price reduction, more enterprises can use advanced public cloud services and accelerate the popularity and development of cloud computing in all walks of life in China.

Taking the cloud server u1 product widely used by small and medium-sized enterprises as an example, the original five-year version with 2c4g configuration cost 768 yuan/year, but after the price reduction, it only costs 485 yuan/year, a price reduction of 36%. Object storage OSS standard storage-local redundancy dropped from 0.12/GB/month to 0.09/GB/month, a decrease of 25%.

In terms of databases, taking the RDS MySQL basic series as an example, the original price of purchasing the five-year version of the 1c2g universal configuration is 936 yuan/year, but after the price reduction, it only costs 562 yuan/year, a 40% price reduction. In addition, Alibaba Cloud has also increased the monthly free public network traffic limit of cloud data transmission CDT from 10GB to 20GB.

Alibaba Cloud has also launched preferential policies for old customers who have previously subscribed for annual subscriptions. If customers renew within three months after the price reduction is announced, the unused annual subscription period can be re-billed at the new price.

At the same time, Alibaba Cloud has also upgraded its "99 Plan" and launched entry-level cloud servers priced at 99 yuan/year and 199 yuan/year for individual developers and small and medium-sized enterprises.

At the press conference, Liu Weiguang made two important conclusions: In the future, cloud computing must be the first choice for enterprises and developers, and technological innovation must be born on the cloud first.

He also said that cloud computing has risen from an enterprise IT strategy to a core enterprise strategy. Once the cloud was a part of IT, now IT is a part of the cloud.

In response to this price reduction, Liu Weiguang said, "Alibaba Cloud's price reduction is not a short-term market competition behavior, but a long-term strategic choice, which is determined by the business model of the public cloud."

As the largest cloud service provider in Asia, Alibaba Cloud provides millions of customers with a reusable global cloud computing network and resource pool. The more customers use it, the more supply chain procurement costs, amortized R&D costs, and resource idle costs can continue to increase. reduce.

Therefore, the more customers using Alibaba Cloud and the larger the scale, the cheaper the cloud price will be; and as the scale continues to expand, the dividends of technology will continue to be released to reward customers.

Alibaba Cloud's price reduction action reflects its confidence in its technical strength. Through independently developed technologies and products, such as Pangu storage systems and Etian 710 chips, Alibaba Cloud can not only provide high-performance cloud services, but also achieve continuous cost reductions.

Seven Values ​​of Cloud Computing

The advantage of self-built IDC is that it can be customized according to specific business needs and provide higher performance and reliability. However, this also means that specialized technical teams are needed to design, build and maintain these facilities, as well as deal with issues related to energy, environment and safety.

Compared with building a self-built IDC, Liu Weiguang elaborated on the seven major values ​​of cloud computing at the press conference – "saving, flexibility, advancement, speed, expansion, wisdom and talent".

Save money on enterprise IT business expenses.

Public cloud improves scheduling efficiency, allows enterprises to flexibly adjust resources according to business needs, and reduces idle resources. For example, an enterprise might reduce from 1,000 standing servers to 500, while adding 300 elastic resources during peak times.

Alibaba Cloud's optimization has improved resource utilization, and using PaaS services can further improve efficiency. After the full stack of Palm Reading Technology was migrated to Alibaba Cloud, the CPU utilization increased by 125% and the cost was reduced by more than 30%. Public cloud can also significantly reduce business start-up time. For example, Left Hand Doctor used Alibaba Cloud to shorten the project launch time by 67%.

Flexible use of computing resources to cope with demand fluctuations.

Public clouds provide global deployment and resource assurance, allowing resources to be created and released instantly. For example, a passenger ticketing platform uses Alibaba Cloud's elastic computing products to expand to 30,000 core computing resources within 1 minute when traffic demand surges during holidays, achieving a maximum single-day ticket sales of 20 million.

The enterprise IT architecture is evolving iteratively.

Enterprises migrating to cloud platforms can upgrade their IT architecture from a traditional model to a distributed system that supports high availability, multiple locations and hybrid deployments. Ctrip has improved the availability of the architecture and achieved flexible deployment through Alibaba Cloud. The modernization of the architecture has also supported Ctrip in becoming the world's largest travel company in five years.

Jie uses advanced technology stacks to accelerate the development process.

Public cloud not only provides infrastructure, but also provides an advanced and rich product technology stack. For example, Serverless supports simplified development processes, and services such as containers and databases accelerate technology applications. Himalaya uses Alibaba Cloud to increase data processing speed and shorten task execution time.

Expansion and rapid expansion of global business.

Alibaba Cloud has 89 availability zones on four continents around the world, which can support the global expansion of Chinese enterprises and simplify IT construction and compliance processes. Luckin Coffee uses Alibaba Cloud's Singapore node to expand into the Southeast Asian market, while Transsion uses Alibaba Cloud services to improve business efficiency and reduce costs.

Smart, low-cost power AI innovation.

Public clouds can provide low-cost, large-scale training and inference resources for AI innovation. Baichuan Intelligence conducted long-term model training on Alibaba Cloud without manual intervention. Miaoya Camera quickly expanded its resources through Alibaba Cloud during peak periods to meet the high traffic demand.

Talent, improve the enterprise's IT talent structure. By using cloud computing, enterprises can allow IT talents to focus more on business development and innovation.

In this data-driven era, the combination of cloud computing and large models has become a key force in promoting technological innovation and industry change. Liu Weiguang believes that Alibaba Cloud provides more than just computing power support for large-model AI innovation. It mainly includes three aspects of capabilities:

Computing power support: Alibaba Cloud provides diverse computing resources, including GPU servers, to support inference and training of large models. Baichuan Intelligence listed above is a famous case.

Model working platform: Alibaba Cloud is committed to building an open large model joint working platform, introducing domestic and foreign open source large models, so that developers and enterprise customers can easily call models and achieve rapid model call.

Model service: Alibaba Cloud provides API interfaces through Tongyi Large Model, allowing enterprises to combine large models with their own business scenarios to improve business capabilities and efficiency. For example, an e-commerce company improved its rating accuracy by 30% by calling a large model and enhanced its interaction with customers.

This synergy of cloud + AI not only accelerates the commercialization process of artificial intelligence technology, but also provides a powerful driving force for the digital transformation of various industries.

Alibaba Cloud's big price cut this time is very similar to that of the mobile Internet era when it wanted the market but not profits. However, Liu Weiguang, senior vice president of Alibaba Cloud, said that the dividends brought by scale effects and technological progress are enough to support a price reduction of this magnitude, which shows that Alibaba Cloud has high hopes for the market after the outbreak of AIGC.

Alibaba Cloud's price reduction strategy has undoubtedly lowered the threshold for cloud technology applications and has also enabled more small and medium-sized enterprises or individual developers to get tickets for this technological revolution.

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