SAN FRANCISCO — Google wants to make its burgeoning public cloud into a standard for developers everywhere. Today it took more steps toward that goal by lowering prices.
Prices dropped by 32 percent for Google cloud services in all regions. On-demand costs are now lower than the three-year reserve prices from other cloud providers. Storage now costs 2.6 cents per gigabyte. The BigQuery service for running SQL-like queries on data saw an 85 percent price reduction.
And Google introduced “sustained-use discounts,” which lowers prices by the minute once engineers use a virtual machine — a slice of a physical server in Google’s cloud — for more than 25 percent of the month.
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“Together, we are really resetting the price curve in the cloud to where it should be,” Urs Hölzle, Google’s senior vice president for technical infrastructure, said at a Google cloud event in San Francisco today.
The idea is to bring cloud pricing fall at a similar rate of hardware price changes. Hardware has witnessed commoditization in recent years in line with Moore’s Law.
These are big challenges to Infrastructure as a Service (IaaS) leader Amazon Web Services and other vendors in the market, including Microsoft and Rackspace. And Google’s going-out-of-business-mattress-store-style price cuts come as all these services become more popular.
Google insists its cloud pricing will continue to fall, too.
“This isn’t a one-time step. This is a philosophy: The price trend off virtualized hardware should follow the price trend of real hardware. So it should follow Moore’s Law.”
Compute Engine is an infrastructure as a service that lets you run your large-scale computing workloads on Linux virtual machines hosted on Google's infrastructure.... read more »
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