Google slashes cloud computing prices in rivalry with Amazon

SAN FRANCISCO Wed Mar 26, 2014 1:43am IST

The Google logo is spelled out in heliostats (mirrors that track the sun and reflect the sunlight onto a central receiving point) during a tour of the Ivanpah Solar Electric Generating System in the Mojave Desert near the California-Nevada border February 13, 2014. REUTERS/Steve Marcus/Files

The Google logo is spelled out in heliostats (mirrors that track the sun and reflect the sunlight onto a central receiving point) during a tour of the Ivanpah Solar Electric Generating System in the Mojave Desert near the California-Nevada border February 13, 2014.

Credit: Reuters/Steve Marcus/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Google Inc (GOOG.O) slashed its cloud computing service prices on Tuesday, seeking to wrest customers from Amazon.com Inc (AMZN.O) and Microsoft Corp (MSFT.O) in the fast-growing market of renting computers and data storage to companies.

Price cuts range from 30 to 85 percent. Google's Cloud Storage will cost 2.6 cents per gigabyte, about 68 percent lower for most customers. Google's Compute Engine services will cost 32 percent less across all sizes, regions and classes.

"The cost of virtualized hardware should fall in line with the cost of the underlying real hardware," Google Senior Vice President Urs Holzle said in a post on Google's official developers blog on Tuesday in conjunction with a cloud event that the company hosted in San Francisco.

Holzle noted that hardware costs have improved by 20 to 30 percent during the past five years but that "public cloud prices fell at just 8 percent per year."

Cloud services are increasingly popular among tech startups and larger companies, which rely on computers owned and operated by the likes of Amazon and Google, the world's No. 1 Internet search engine, instead of buying the equipment themselves.

Amazon, one of the largest online retailers, was among the first companies to recognize the opportunity. Amazon Web Services provide the underlying infrastructure for key aspects of popular Web companies such as online movie streaming service Netflix Inc (NFLX.O) and social network Pinterest.

Amazon's Web Services will hold an event in San Francisco to discuss its business on Wednesday. Amazon did not immediately respond to a request for comment on whether it would respond to Google's price cuts.

Earlier this week Cisco Systems Inc (CSCO.O) announced plans to spend $1 billion over the next two years to build a new cloud services business.

(Reporting by Alexei Oreskovic; Editing by Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

AMAZON

TECH SHOWCASE

Rising Market Value

Rising Market Value

Facebook goes express to mega-cap status  Full Article 

Right to be Forgotten

Right to be Forgotten

Google under fire from regulators over response to EU privacy ruling.  Full Article 

Record Smartphone Sales

Record Sales

LG Electronics flags further mobile improvement after Q2 profit jump.  Full Article 

Smartwatch

Smartwatch

Swatch Group denies working with Apple on smartwatch.  Full Article 

Strong Results

Strong Results

Nokia's fortunes brighten on heavy network spending.  Full Article 

Battle of Giants

Battle of Giants

In China, Apple's focus pays off while Samsung feels squeeze.  Full Article 

Anonymity Services

Anonymity Services

Flaws could expose users of privacy-protecting software, researchers say.  Full Article 

Biggest Chipmaker

Biggest Chipmaker

China regulator determines Qualcomm has monopoly - state-run newspaper.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage