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Comment by sofaofthedamned | Hacker News Reader

Hate oracle personally. But when Amazon mention cost savings, I assume they're not at list price for normal aws customers like us?

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Article mentions that, yeah - cost savings are based on their already heavily discounted deal with Oracle.

I think OP means Amazon’s discount on AWS.

Many customers on AWS have contracts that guarantee discounted rates given sufficient volume. People have commented on hn about negotiating them, and you can see some examples from recent IPO filings. Amazon (the non-AWS parts) are yet another customer of AWS, and wherever possible you should expect them to operate like one. They even buy RIs!

Thanks - yes that's exactly what I meant

Oops, thanks for clarifying.

I think OP was asking if Amazon is calculating their savings based on the public AWS service pricing or their own cost for running on those AWS services (there's obviously a good chunk of margin on what it costs to run AWS and what the listed service prices are for those services).

He was referring to RDS list price.

Oracle licenses are priced with a relatively equation, taking two inputs:

1) How much money do you have 2) How much would it cost you to switch to something else

Your annual license cost is the smaller of the two inputs, minus a 10% discount.

Your formula yields zero in some cases.

It's also satire.

Wondering what you think of the following quote:

> Baseball is ninety percent mental and the other half is physical.

I can't say either way, but they mention the average person saves even more than they do (90% vs the 60% Amazon saw). This was due to their Oracle license being much cheaper than normal Oracle customers. So if you extrapolate, even if they did get some discount being Amazon, the discount they were getting on Oracle probably makes the savings comparable to if they weren't getting large discounts on each side (regular customers of Amazon/Oracle).

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