Google has cut cloud compute prices by 10% effective immediately, the company said. The move represents an opportunity for Google to edge itself into the cloud leadership position ahead of competitors Amazon and Microsoft.
Today’s announcement applies to all Google Compute Engine instances across all regions.
Earlier this year, Google dropped its cloud storage prices 68%. The same week, Amazon and Microsoft cut storage prices 10 to 68% and up to 20%, respectively.
Is this a good thing?
Today’s price cuts are possible largely because of cloud computing itself, which reduces hardware costs and improves data center operability.
Although these price cuts, and the ones instituted by Amazon and Microsoft, represent an opportunity for enterprises, it could also create challenges for the service providers. Just ask Rackspace, which went from being the second-most used cloud service to looking for a purchaser after several failed price-cutting attempts.
More than five million businesses currently leverage Google's enterprise tools - which the company rebranded “Google for Work” last month - including 64% of the Fortune 500.