Google and Amazon are clearly locked into a Cloud Storage price war with consumers and businesses as the beneficiaries.
Last month, Google lowered its Standard package for Google Cloud Storage by 20%. Amazon immediately responded with a price decrease of 25% for its S3 Cloud Storage. Not to be outdone, Google announced an additional, incremental increase of 10%, leaving its total recent reduction at approximately 30%, a bit less than Amazon.
What isn’t clear is the price reduction rationale for either Google or Amazon.
1) Are they simply being ‘good Cloud citizens’, passing along their recently gained efficiencies?
2) Will these price decreases be offset by price increases in other service offerings?
3) Has Cloud Storage been identified as a ‘loss-leader’ designed to build market share for additional, planned service offerings?
4) Are the price reductions a ‘preemptive strike’ against an unknown such as Rackspace or Microsoft?
There is no way of knowing but for the moment, be happy. It will be interesting to observe their tactics during 2013.
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