Let the cloudwars begin: Amazon Web Services and Google Cloud slash prices

Published on April 1, 2014 by Frederik Denkens

Last week was a great example of how consumers of IaaS and PaaS services can benefit from the increasingly more competitive global cloud market. Dramatic price cuts, ranging from 10% to 85%, for everybody and best of all: almost instantly!

The week started off with the Google Cloud Platform Live event in San Francisco where Google Cloud (GC) announced spectacular price reductions ranging from 32% (compute) to 85% (BigQuery).

Additionally they introduced the sustained-use pricing model. In effect a simpler and more flexible approach to long-term commitments, as compared to the complexity of reserved instance pricing from AWS.

Interestingly enough, Amazon Web Services also had their own event planned for that week. Last Thursday at the AWS Summit, also in San Francisco, AWS announced lower prices on on-demand compute resources up to 40%. To make it even more interesting, AWS matched exactly the new GC prices on the standard compute classes (n1-standard vs m3).

Probably in an attempt to counter the new sustained-use pricing model from GC, the reserved instances’ prices decreased up to 60%.

For AWS the slashing didn’t stop there. There were also additional price reductions on the second tier services like S3 (36% to 65%), RDS (28%), ElastiCache (34%) and Elastic MapReduce Price (27% to 61%).

Earlier this year, Windows Azure promised something: they’d always at least match Amazon Web Services prices for commodity services such as compute, storage and bandwidth. We’re looking forward to their announcement 🙂

What can we learn from this?

Consumers of these services can only benefit from this battle for the market. And it is clear that this is just the beginning. We expect this market to heat up even more bringing more for less for years to come. As a customer of the Skyscrapers, you will always enjoy these benefits as soon as they come to reality.

Off course each customer will still have to evaluate what is the best match for their specific business case. This goes beyond pricing: features, future plans, business requirements, etc.

The Skyscrapers are ready to help you with that, so don’t hesitate to get in touch with us!

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