Google announces huge price drop in its cloud storage and computing

26 Mar 2014

At Google’s Cloud Platform event, the company announced it is reducing its charges for cloud storage and computing across the board, as well as discontinuing a number of add-ons and charges.

Citing Moore’s Law, which states that the number of integrated circuits or transistors doubles at a rate of every two years, Urs Hölzle, the senior vice-president of technical infrastructure at Google said the reduction in costs was just an inevitability of time.

What will surely present a major challenge to the company’s biggest cloud rivals, such as Amazon and Microsoft, will see a 32pc drop in the price across all regions in Google Computing Engine, as well as a 30pc drop in Google’s App Engine.

From a company’s perspective, this will reduce the cost of cloud storage by 68pc to just €0.18 per gigabyte.

According to Hölzle, the pricing systems in place in cloud storage is still too complicated, and drastic changes needed to be made to the service to facilitate this change. “Pricing is still way too complex … While we already have a strong platform, these are the early days. We see a clear path to making developers phenomenally more productive.”

Hölzle had earlier gone into detail about the scope of Google’s Cloud Platform and the scale of how much data is being used when each day, the platform deals with about 4.75m active applications running on GCP, with 6.3trn data storage requests, as well as 28bn front-end requests.

Colm Gorey was a senior journalist with Silicon Republic