|By Udayan Banerjee||
|March 28, 2014 01:21 AM EDT||
If you look at the cloud pricing trend it is obvious that it has not been following Moore’s Law. In my opinion, that is the single most significant obstacle to cloud adoption. It erodes the value proposition over a period of time.
On 25th March, 2014 – Google has declared its intention to follow the Moore’s Law in cloud pricing. It has brought down prices by about 25% to 55% for different services.
With this announcement Google has changed the game!
Obviously, Amazon could not remain quiet. Next day they announced a price reduction of about similar magnitude. Other provides are yet to follow but you can be sure that such reduction will come across the board from most providers.
Can Google deliver on the promise?
If Google can deliver on its promise to keep lowering the price in line with Morre’s Law than it would really become a game of survival of the fittest.
As I had mentioned earlier that Google is already winning the Eco-System war – but cloud was one of its weak link. With this new strategy it may be able to take an even firmer grip on the eco-system.
All this is very good for the consumer but …
… what happens if Google decides to turn evil?
- Google’s Bigger, Cheaper Cloud
- Google Platform Live to Boost Price Pressure on All Big Cloud Players
- Bringing together the best of PaaS and IaaS
- Is Cloud losing its Value Proposition
- Google slashes cloud storage to $0.026 per GB. Your move, Amazon
- Amazon HALVES cloud storage prices after Google’s shock slash
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