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.

 

Dear Google, here’s what I want for the next Olympics …

… I hope that in accordance with your missionto organize the world’s information and make it universally accessible and useful“, you will make that tiny little green “Live” word into a YouTube link, where I would be able to watch the game, without caring about in which country I currently am or which device I currently use.

ice hockey

Now that Google’s selling Motorola, how much did it overpay in 2011?

Now that Google’s selling Motorola, how much did it overpay in 2011?

Just how much did Google (GOOG) overpay for Motorola Mobility when it agreed to buy the phone maker for $12.5 billion in 2011 Shareholders will have to figure that out after Google announced on Wednesday that it is unloading the money-losing subsidiary on Chinese electronics maker Lenovo Group (0992.HK) for $2.9 billion.

Sure, Motorola had $3 billion of cash on its balance sheet when it was acquired and Google later sold a set-top box division for $2.4 billion. But that still leaves Google CEO Larry Page left to explain why he’s only getting $3 billion for the remaining net investment of $7 billion. “Patents,” he’d likely reply.

Analysts speculated all along that Google made the hasty deal only to get control of Motorola’s vast trove of about 17,000 patents. At the time, Apple (AAPL) and Microsoft (MSFT) appeared to be waging an intellectual property war to beat back the Android challenge. Many of those battles continue and intellectual property attorneys are split over whether the Motorola patents have helped Google much, if at all.

Still, Google said it would retain “the vast majority” of patents from Motorola in the sale to Lenovo.