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Amazon Web Services announces Amazon Redshift

Zafar Anjum | Nov. 29, 2012
Fast and powerful data warehouse service which is available at the one tenth of the cost of the traditional data warehousing services

Amazon Web Services (AWS) has launched Amazon Redshift, a fast and powerful, fully managed, petabyte-scale data warehouse service in the cloud, announced Andy Jassy, senior vice president, AWS, today in Las Vegas.

Jassy broke this news during his keynote address at AWS' first customer and partner conference, re:Invent, which has attracted 60,000 attendees from 60 countries to the American city of fun and magic.

Launched in 2006, AWS, part of, provides infrastructure services to businesses in the form of web services (cloud computing).

In his keynote, Jassy announced the limited preview of Amazon Redshift which enables AWS customers to dramatically increase the speed of query performance when analyzing virtually any size data set, using SQL-based business intelligence tools.

According to Jassy, the beauty of this new offering is that with a few clicks in the AWS Management Console, customers can launch a Redshift cluster, starting with a few hundred gigabytes and scaling to a petabyte or more. He said that this is a highly inexpensive service as it is available for under US$1,000 per terabyte per year - one tenth the price of most data warehousing solutions available to customers today.

Amazon Redshift uses a number of techniques, including columnar data storage, advanced compression, and high performance IO and network. It is available with two underlying node types, including either 2 terabytes or 16 terabytes of compressed customer data per node, said Jassy. One cluster can scale up to 100 nodes and on-demand pricing starts at just US $0.85 per hour for a 2-terabyte data warehouse, scaling linearly up to a petabyte and more. Reserved instance pricing lowers the effective price to $0.228 per hour or under $1,000 per terabyte per year. Over twenty customers, including Flipboard, NASA/JPL, Netflix, and Schumacher Group, are in the Amazon Redshift private beta program, said Jassy.

"We are excited about being able to use this new service to take our cloud usage even farther and run a large scale data warehouse in the cloud for our engineering, science, and IT data," said Tom Soderstrom, Chief Technology Officer, Office of the CIO, NASA/JPL.  "We're delighted to have a new, fast and low-cost option for analyzing massive amounts of data. This new service will also allow us to create new types of Big Data analytics that will lead to new discoveries."

Price cut on Amazon S3

In his address, Jassy also delighted AWS customers by announcing a 25 percent reduction in cost on the Amazon S3 services. Amazon S3 stands for Amazon Simple Storage service. Since its launch, AWS has reduced its prices 20 times.

Reed Hastings, the CEO of Netflix, who came on stage to talk about his company's experience with AWS, welcomed the price reduction. He said that the announcement spelled millions of dollars of savings for his company.



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