Google price cuts see cloud costs fall by 10 per cent


Google has cut the prices of its Compute Engine instances in a bid to out manoeuvre AWS and Azure.

The across the board cuts were made at Google’s Atmosphere Live webcast and will see the cost of Google’s cloud drop by 10 per cent, escalating the cloud price war further.

Urs Hölzle, senior vice president for technical infrastructure, said in a blog post that Moore’s Law had enabled the company to slash prices.

The reductions are effective immediately for all Compute Engine instances in all regions. The move is likely to see both AWS and Microsoft Azure also move to cut prices.

"These cuts are a result of increased efficiency in our data centres as well as falling hardware costs, allowing us to pass on lower prices to our customers," said Hölzle.

“The move further helps developers realise the promise of cloud computing, he said, "by providing on-demand access to world-class technology at an affordable price."

He said the cloud would help developers become “more productive, agile and efficient.”

“Many development teams spend about 80 per cent of time on what we call ‘fix and fiddle,’ such as managing systems, fixing bugs and just keeping the lights on. Only 20 per cent of time is spent how it should be — building new products or systems that will be platforms for growth.”

Compute Engine prices range from the lowest tier standard one core with 3.75GB memory for US$0.069 in EMEA. A 16 core instance with 104GB costs US$1.296.

Back in March, Google slashed the prices of cloud storage by up to 15 per cent. AWS followed suit with a price cut just one day after which saw prices drop by 38 per cent for m3 instances, 30 per cent for c3 and between 10 and 40 per cent for older instances.

Earlier this week, Oracle founder Larry Ellison said his firm would price match AWS and Google on the cloud.

Rene Millman

Rene Millman is a freelance writer and broadcaster who covers cybersecurity, AI, IoT, and the cloud. He also works as a contributing analyst at GigaOm and has previously worked as an analyst for Gartner covering the infrastructure market. He has made numerous television appearances to give his views and expertise on technology trends and companies that affect and shape our lives. You can follow Rene Millman on Twitter.