Google reveals price cuts to push Moore's Law into the cloud


Google reveals price cuts to push Moore's Law into the cloud

Simon Quicke

The take-up of public cloud services should increase as Google announces price cuts to its pay-as-you-go services of up to 85% as it tries to widen the market for its hosted services.

The vendor has been locked in a tit-for-tat price cutting battle with its rival Amazon but has now gone even further as it looks not only to shake-up its competitor but also the market with wide ranging reductions in the costs of its cloud services.

The web search giant claimed that even though many vendors herald price cuts not that much has really been delivered and pricing hasn't followed 'Moore's Law' and used its Cloud Platform Live event to outline its latest approach.

Urs Holze, senior vice president at Google, said that the promise of the cloud had not been fully met and it was not just announcing changes in pricing but also increased functionality and reduced complexity to attract more developers to its platform.

"Pricing is still way too complex," he added "There is still a lot of room for it to go down and it seems like you need a PhD to work out the best options," he said.

"Over the last five years prices have been falling by 6 to 8%, which is nice, but hardware prices have been falling by 20-30% a year so the cost of the underlying components has been falling...because they have been following Moore's Law," he added.

He said that the gap should not exist and although cloud and hardware costs would not match there was no need for such a large disparity and it would make on-demand price reductions to make those services more attractive.

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