Cloud computing price war

Now this looks like a straight up war!  Less than a day apart, both Google and Amazon announced yet another price drop on their services.  TechCrunch sums up Google’s price drop as following:

Google Compute Engine is seeing a 32 percent reduction in prices across all regions, sizes and classes. App Engine prices are down 30 percent, and the company is also simplifying its price structure.

[…]

The price of cloud storage is dropping a whopping 68 percent to just $0.026/month per gigabyte and $0.2/month per gigabyte/DRA.

[…]

BigQuery, Google’s database for doing big data analysis, is getting the largest price drop at 85 percent. The team reduced per-gigabyte storage pricing from $0.08/GB to $0.026/GB, a 68 percent drop, and interactive queries now cost $5/TB instead of $35/TB. Batch queries now also cost $5/TB instead of the previous $20/TB.

Amazon Web Services Blog provides comparison tables between old and new prices, which are quite similar.  And they also notice the following:

If you’ve been reading this blog for an extended period of time you know that we reduce prices on our services from time to time, and today’s announcement serves as the 42nd price reduction since 2008.

 

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