Google has reduced its Compute Engine cloud pricing by 10 percent in the latest attempt to undercut rivals Amazon Web Services (AWS) and Microsoft in the public cloud market.
Writing on a Google blog post Urs Hölzle, senior vice president for Technical Infrastructure, explained that Moore’s Law is proving just as true for cloud storage as processor technology, helping the firm cut costs.
"Effective immediately, we are cutting prices of Google Compute Engine by approximately 10 percent for all instance types in every region," he said.
"These cuts are a result of increased efficiency in our data centres as well as falling hardware costs, allowing us to pass on lower prices to our customers."
A table showing the new pricing as outlined by Google is below.
Hölzle also promised that more updates to the Compute Engine platform will be unveiled on 4 November at the Google Cloud Platform Live event, but did not elaborate on what this may entail.
The new pricing structures come at a time of increased competition for cloud customers. AWS and Microsoft have also slashed prices in recent months as cloud storage and server use become ever cheaper.
David Bradshaw, research manager for public cloud services in Europe at IDC, told V3 that improvements in infrastructure for cloud platforms is helping to create the price wars between vendors, to the benefit of businesses.
"This is good news for the wider market and brings more people in [to the cloud]. As long as Moore’s Law keeps working the vendors will take advantage of it," he said.
Bradshaw added that the only risk to businesses chasing ever-lower prices is vendor lock-in if a company did suddenly put their prices up. But this seems unlikely given the competition in the market.
"If Google were to put up prices there would be other vendors only too pleased to step in," he said, although he warned that planning for such an occurance is sensible business practice.
"You should always have an exit strategy [from a vendor] and try and ensure you are not too dependent on a single platform," he said.
Offering cloud services is a vital part of most companies' strategies, with even previous refuseniks such as Oracle now touting a move to the cloud to meet growing demand from businesses for scalable services hosted off-site.
For more information on the cloud, visit the Intel IT Center.
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