Saturday 17 March 2018

AWS is planning to optimize Amazon Chime pricing which will provide a competitive edge

Amazon Chime

Amazon Web Service is planning to provide competitive pricing models for Amazon Chime where the pricing model will charge business based on how often their employees use the Cloud Meetings and messaging platform. Amazon Chime offers a free version where it allows users to chat and attend meetings. With the free version, AWS has also added corporate directory integration and screen sharing which was earlier sold as the freemium plus package for $2.50 per user per month.  The businesses have to pay $15 per user per month to provide only selected group of employees the ability to host meetings. Any user will be now able to host meeting which will charge $3 per day for hosting one meeting and for a maximum of $15 per month.  

Amazon Web Services said that the new pricing model of Amazon Chime will reduce the bills of all the customers. Collin Davis, General Manager of Alexa for Business said in a keynote address at the Enterprise Connect that it is the AWS way by charging customers only for what they use and nothing more with no up-front commitments. Alexa is the Amazon Web Services Cloud-based intelligent voice service. With the changes in the pricing model, it will give more flexibility for the businesses in how to utilize the service. The companies can use the Microsoft Active Directory settings and Amazon Chime control can be utilized to control the user's host meetings instead of buying licenses for individual users which is time-consuming and costly. 

Amazon Chime pricing model impact on Market:

Amazon Chime will become more competitive after the usage-based pricing model will be altered which will bring a competitive edge against the rival team collaboration platforms such as Cisco Spark, Slack and Microsoft Teams which have big footholds in the Enterprise Market. Irwin Lazar, an analyst at the Nemertes Research which is based in Mokena III, said that the lower price will cause a lot of challenges for the competitive platforms which are costlier and very expensive. 

Amazon Web Services has tried to optimize its price relating to Amazon Chime since the launching of the service in February 2017. AWS user to allow the customers to allocate the month subscription frees of the specified user by deactivating and activating accounts mid-month. With the growing number of competitors challenging the business with its features and pricing, it has thus become important for the Amazon to do something that will level up their competition said Zeus Kerrawala, founder and principal analyst at ZK Research in Westminster, Mass. He believes that are two ways of disrupting the market trend by being one through innovation and one is through pricing. 

Kerravala said that Amazon has frequently tried to provide disruptive pricing were now gain $17.5 billion in sales in 2017 where it allows the customers to afford to cover up cost so utilize the messaging and meeting market. He had predicted that the Amazon Web Service will add other feature in Amazon Chime that will charge only on the usage basis. The latest pricing model makes it less risky for the enterprise to adopt the Amazon Web Service. 

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