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Google continues cloud war against Amazon with price cuts, new features

Nov. 04, 2014 3:01 PM ETAlphabet Inc. (GOOG) StockGOOG, AMZN, GOOGLBy: Eric Jhonsa, SA News Editor10 Comments
  • Google's (GOOG -0.3%) has once more aggressively slashed cloud infrastructure (IaaS) prices in an attempt to gain ground against 800-lb. gorilla Amazon (AMZN -1.1%). Price cuts covers SSD, database, disk snapshot, storage, and networking services, and range from 23%-79%.
  • Google, which likely has the most infrastructure scale of any IaaS provider (if one counts its broader Web services ops), has said it wants cloud pricing to fall at a pace equal to Moore's Law; that implies a halving every 18 months. It cut prices in March for both its core computing service (Compute Engine) and other offerings, and more recently gave Compute Engine another 10% cut.
  • The Web giant has also launched several new IaaS services today, with a focus on countering Amazon (widely seen as having a feature set lead) by catering to developer needs. The service getting the most attention is Container Engine, which allows users to manage and provision server clusters running Docker containers. Containers act as lightweight alternatives to virtual machines, and are quickly growing in popularity.
  • Also launching: 1) Three new network connectivity options meant to improve access to Google's fiber network' Amazon and Microsoft have made similar moves. 2) New features for the recently-launched Managed VM service, which combines the software flexibility of IaaS services with the ease-of-use of the App Engine cloud app (PaaS) platform. 3) Automatic resource scaling for Compute Engine virtual machines. 4) The integration of newly-acquired Firebase's mobile/Web app developer tools.
  • Amazon quickly responded to Google's March price cuts, and might do the same this time. Synergy Research recently estimated Amazon still had a 27% combined IaaS/PaaS share in Q3, more than twice that of any rival. Google was ranked #4, behind Amazon, Microsoft, and IBM.
  • Meanwhile, Amazon has decided to give Prime subs unlimited cloud storage for photo backups. Before, the feature was only available to Fire Phone users.

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