AWS continued their expansion the other day by announcing a new Japan region, hosted in Tokyo.

What I don’t quite understand is some of the pricing differences. I can understand that bandwidth might be different in different territories, and maybe the price of hardware (local taxes maybe? different shipping and local labour costs etc?), but if you compare the EC2 EU region with the new APAC-Tokyo region, you can see that whilst the Windows costs are the same, the Linux costs are higher in Tokyo.

AWSPricingComparison

As there should be no software license cost for the Linux instances, this seems a bit weird. All I can think of is that the Microsoft SPLA (Services Provider Licenses Agreement) that AWS have managed to negotiate with Microsoft happens to be cheaper than the EU region and exactly offsets the other higher costs.