Hometech newsAWS Drops Data Egress Fees: Game-Changer for Cloud Industry

AWS Drops Data Egress Fees: Game-Changer for Cloud Industry

Amazon Web Services (AWS) has announced a significant change. It will no longer charge customers for moving their data away from its platform. This move is important not only for Amazon but also for the entire cloud industry.

According to Amazon, the decision aims to give customers more flexibility in choosing their cloud, on-premises, or hybrid solutions. It follows a similar move by Google Cloud about two months ago.

The decision is in line with the European Data Act, which became effective in January 2024. This act aims to improve competition by making it easier for customers to switch between cloud providers.

AWS eliminates the egress fee

AWS previously limited users with a 100GB-per-month free data transfer cap, now lifted for unrestricted migration upon egress.

While the European Data Act focuses on competition within Europe, AWS’s policy change applies globally, like Google’s. It’s unclear if providers see this as the right move or anticipate similar global regulations.

AWS’s change requires users to contact the company for credits to cover egress costs, possibly to retain customers.

In a blog post, AWS developer Sébastien Stormacq hopes users will stay despite easier provider switching.

Fee removal is positive, but AWS still imposes technical barriers, monitored by the UK’s Competition and Markets Authority (CMA).