Rackspace (RAX -3.3%) dives after Amazon Web Services (AMZN +0.2%) cuts EC2 cloud computing...

|About: Rackspace Hosting, Inc. (RAX)|By:, SA News Editor

Rackspace (RAX -3.3%) dives after Amazon Web Services (AMZN +0.2%) cuts EC2 cloud computing prices for dedicated instances (i.e. hardware dedicated to a single client) by up to 80%. Though AWS is known for cutting prices early and often, the size of this cut makes it noteworthy. Moreover, the fact it covers dedicated hardware suggests Amazon is taking aim not only at the cloud infrastructure services provided by the likes of Rackspace, Microsoft, and Google, but also the traditional hosting services offered  by Rackspace and others.