Roger Stringer   About ▾

I'm Roger Stringer: a father, writer, developer, consultant, chef, speaker. Founder of TheInterviewr.

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Welcome to the cloud price wars

 

Last week, Google slashed their prices on their cloud computing and storage services…

Even without the sustained use discounts, Google’s pricing now undercuts that of its competitors for on-demand pricing and is often lower than Amazon’s EC2 prices for reserved instances, too.

So far, Google, Amazon and Microsoft have always matched one another’s cloud-hosting prices, and chances are, we will see price drops from Google’s competitors in the coming weeks, too. Amazon, of course, is hosting its own cloud-centric event later this week and we will likely hear more from them about pricing, too.

Shortly after, Amazon followed suit with their own price drop…

The price cuts range from 10 percent to 65 percent, Andrew Jassy, senior vice president of Amazon Web Services, told a conference for Amazon web developers in San Francisco.

This marks the 42nd price reduction for AWS since its introduction eight years ago. In a separate press release on Wednesday, the company said the U.S. Department of Defense deemed Amazon’s cloud computing service secure enough to be used more broadly within the department.

Now, this week, Microsoft Azure, has also dropped their prices…

Consistent with our previously announced commitment to match Amazon on prices for commodity services, we are cutting prices on compute by up to 35% and storage by up to 65%. We recognize that economics are a primary driver for some customers adopting cloud, and stand by our commitment to match prices and be best-in-class on price performance.

We seem to be entering a cloud commodities market, where everyone is scrambling to match everyone else so customers aren’t as tempted to jump ship. The cloud itself is becoming the market, and providers want to make sure their product is the most tempting.

I also noticed some other cloud providers such as RackSpace haven’t dropped their prices yet, but that is a matter of time if they want to hold onto their customers…

Filed Under: Links

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