Google drops cloud pricing by 2.6 cents per GB

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Google has dropped the pricing of its cloud platform services by2.6 cents per GB which is far below its rivals and introduced new offerings to lure developers to deploy their applications in the company?s datacenters.

Google announced the news today at the Google Cloud Platform Live event in San Francisco along with a 32 per cent cut in on-demand compute pricing, and an 85 per cent price cut for Big Query data analysis engine.

“Together we are resetting the price curve in the cloud to where it should be,” said Google’s senior VP of technical infrastructure Urs H?lzle as the company noted that the cloud prices in the industry were falling by 6 per cent each year, while hardware cost were falling by 20 per cent. “This is a philosophy. The price curve of virtual hardware should follow the price curve of real hardware.”

In order to fill in the gap, Google has dropped the prices for its cloud storage by 2.6 cents per GB (a savings of about 68%); reduced its compute engine prices by 32% across all sizes, regions, and classes; and cut BigQuery on-demand prices by 85%.

Moreover, reports also said that Google has introduced a new automatic price reduction called “sustained-use discounts.” This will lower prices for customers further as they use Google’s services more. One thing more, ZDnet said, Google also unveiled a new Managed Virtual Machines for App Engine which can be ?run and managed automatically with what is touted to be only a few lines of a code.? This new option of Managed Virtual Machines could offer freedom over control supplied by App Engine and Computer Engine, which also support Windows Server 2008 R2 in limited preview.

?While we already have a strong platform, these are the early days, we see a clear path to making developers phenomenally more productive,? H?lzle said.

Since Google has been competing with rivals Amazon and Microsoft, both Amazon and Microsoft are expected to respond with price reductions for their cloud computing offerings – Amazon Web Services and Microsoft Azure.


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