Google slashes cloud prices as battle with Amazon continues

|By:, SA News Editor

Prices for Google's (GOOG - unchanged) Compute Engine cloud computing services and App Engine cloud app platform have respectively seen 32% and 30% across-the-board cuts. Prices for Google's Cloud Storage and BigQuery (big data analytics) services have respectively been cut by 68% and 85%. "We think cloud pricing should track Moore’s Law," the Web giant declares.

TechCrunch notes Google's pricing for on-demand computing instances now undercuts rivals such as Amazon's (AMZN +0.7%) EC2 service, and that its pricing for reserved instances is also often lower than EC2's. Of course, Amazon has been aggressive with its own pricing, and might soon return fire.

Also: As recently hinted, Google has launched a service (Managed Virtual Machines) that meshes the software flexibility of Compute Engine with the management ease of App Engine. Google has also added support for Windows Server, as it tries to narrow Amazon's feature set lead.

Rackspace (RAX +1.7%), whose shares have fallen before in response to price cuts from rivals, spiked lower due to Google's announcement. But shares are still up on the day thanks to Morgan Stanley's upgrade.

Synergy Research estimates Amazon had a 35% cloud infrastructure (IaaS) share in Q3, towering over Google and others. But in the app platform (PaaS) space, its share was close to those of Google, Salesforce, and Microsoft.

Yesterday, Cisco joined a long list of enterprise IT giants to launch a cloud platform. The company plans to rely heavily on carrier partners/resellers to offer its services.