Competition seems to have its effects on the world’s largest search engine, as Google has cut down on its cloud computing service’s prices on Tuesday. The market for renting computers and data storage to companies had an acceleration shift to new momentum. Google aims to tap this and also gain advantage over its rivals by offering tempting deals. The company is competing with the likes of Amazon and Microsoft.
According to a TOI report, the price cuts will vary from 30 to 85 per cent depending on the kind of service is selected. Google Cloud Storage will now cost 2.6 cents per GB, that is, nearly 68 per cent less. Google Compute Engine will also cost 32 per cent less.
Urs Holzle, senior vice president, Google said, “The cost of virtualised hardware should fall in line with the cost of the underlying real hardware,” in a post on Google’s official developers blog. Cloud services are most used by tech startups and larger companies that do not have self owned software and hardware, but depend on computers owned and operated by companies like Amazon and Google. Holzle said, “Public cloud prices fell at just 8 per cent per year,” in past five years.
Google’s price cut directly competes with Amazon, which is one of the first companies to successfully promote the cloud computing technology. Amazon Web Services provides infrastructure to companies like Netflix Inc and Pinterest.