Google takes on Amazon and Microsoft

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Google takes on Amazon and Microsoft with second cloud price cuts in 12 month

Moore’s Law is really working out for them

GOOGLE HAS CONTINUED its commitment to Moore’s Law-linked pricing, with another round of price cuts for its cloud services, as well as introducing a new class of virtual machine.

Last year, the company slashed prices, explaining that it would continue to pass the savings on to customers as its costs fell in accordance with Moore’s Law, that is to say, the cost savings made by multiplying out its customer base and therefore its compute capabilities per GB.

OK, so that’s not technically Moore’s Law, but we get the idea.

Today, they’ve done it again with price drops ranging from 5 percent for High CPU compute through to 30 percent for Micro. This means that the cost of a virtual machine (VM) through Google has halved since the platform launched in late 2013.

In addition, the company has launched a new class of Preemptible VM, which runs short-batch jobs 70 percent cheaper than regular VMs. Each Preemptible VM is the same as any other VM, the difference being that they are created on a supply and demand scale basis. Prices are far cheaper than standard as they take advantage of resources that are lying idle.

Pricing is .015c per hour – compare with .050c per hour for a standard VM.

Urs Hölzle, senior vice president technical infrastructure, said, “Many factors influence the total cost of a real-world application, including the likelihood of design changes, the rate of decrease of compute prices, and whether you’ve been locked into price contracts that are now above market rates, or on instances that don’t fit your current needs anymore.

“With Google Cloud Platform’s customer-friendly pricing model, you’re not required to make a long-term commitment to a price, machine class, or region ahead of time.”

The prices quoted are for the US region but there are to be similar savings in Europe and Asia markets.

Next week is a big week in the Google calendar with the company’s annual I/O Developer Conference expected to reveal, among other things, Android M. The fact that this news couldn’t wait till then shows how much else it looks like they plan to cram into the two-hour keynote.

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