Google Inc. has announced substantial reductions in tariffs for its Cloud Services products.
In a clear attempt at sparking a tariff–war with its direct competitor, Amazon Inc., Google has announced heavy reductions in tariffs for using its Cloud Compute Engine. The reductions have been announced across the bouquet of products, but few became a lot cheaper.
Further to the reductions, Google has tried to simplify the pricing process by offering uniformity in the tariffs. The company has achieved the same, by eliminating some charges, while merging few others to put forth a highly streamlined pricing structure to the Cloud Compute Engine.
On the whole Google Cloud saw a reduction of minimum 30%, across all regions, sizes and classes. Some of the notable mentions that could have a lot many takers in the future include BigQuery, one of Google's popular products, which is essentially a database for doing big data analysis, got the biggest reduction of 85%.
From the customers' perspective, keeping and processing data off Google Cloud Services now costs a whole lot less. The team has effectively reduced per-gigabyte storage pricing from $0.08/GB to $0.026/GB. Interactive Queries now cost $5/TB instead of $35/TB and batch queries now also cost $5/TB instead of the previous $20/TB.
Interestingly, Google hasn't reduced tariffs of Cloud SQL and the Cloud Datastore but looking at the trend, it won't be a surprise if Google announces lowered prices in the near future.
Google justified the discounts by pointing out the huge discrepancy between falling prices of Cloud Services and Physical Media which housed and processed the data. Google Senior Vice President Urs Holzle was reported as saying, "The cost of virtualized hardware should fall in line with the cost of the underlying real hardware."
"While public cloud prices have dropped 6 to 8 percent annually, hardware costs actually dropped 30 to 45 percent annually," Greg DeMichillie Director of Product for the Cloud Platform, was reported as saying by Techcrunch.
Though the revised pricing structure may appear to be in tune with Google's internal motto "Don't Be Evil," the underlying motive seems to be gaining a lead over its direct competitor Amazon. Considered to be one of the first companies in realizing the potential of offering Cloud Services to tech startups, Amazon's Web Services now provides and supports the core functions of popular web companies like Netflix Inc., Pinterest, Nokia, LinkedIn and many others.
Cloud Services have enabled many tech startups to realize their dream by offering them a very low upfront investment and assuring flexibility of pricing and capacity as these companies scaled–up. With these reductions, can Google's Cloud Services attract more customers?
[Image Via Techcrunch]