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Summary:

Google Cloud Platform Live: Google slices prices across regions and services to take on the big dog in public cloud.

Urs Hölzle, Google's SVP of  technical infrastructure.
photo: Barb Darrow

Google’s going big on price reductions — slicing prices for its on-demand compute instances by 32 percent “across the board and across regions,” said SVP Urs Hölzle.

That’s lower than the reserved instances of most other cloud providers with no upfront payment and no lock-in, he said, but he has not yet provided raw numbers. The “most other cloud providers” would be Amazon and Microsoft

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Hölzle, who will be speaking at our Structure conference in June, also said Google will provide sustained use discounts without pre-payment. Per Google: Sustained-Use Discounts apply to steady-state workloads and kick off automatically when you use a VM for over 25 percent of the month. When you use a VM for an entire month, there’s an additional 30 percent savings over the new on-demand prices.

Google SVP Urs Hölzle

Google SVP Urs Hölzle

This  could be a pretty big game changer if prices really do come in lower than Amazon Reserved Instances. (Don’t count your chickens though, AWS is hosting its own cloud event tomorrow.)

Prices on Google BigQuery were sliced even deeper, by 85 percent. And it gets a greatly sped up the data ingest process, which used to handle  1000 rows of data per second, but can now deal 100,000 rows per second. And a new BigQuery streaming service “can take massive amounts of data generated and immediately start to analyse it and draw business conclusions from it without having to do data warehousing, sharding, ETL or copying,” said Greg DeMichillie, director of product management.

That capability takes on Amazon Kinesis, announced last year.

Greg DeMichillie, director of product management, Google.

Greg DeMichillie, director of product management, Google.

DeMichellie also outlined added OS support. As expected, support for Windows Server 2008 R2  as well as Red Hat Linux and Suse Linux is coming to Google’s cloud which heretofore has been Debian or CentOS Linux centric.

Other highlights: Google kicked off its Google Cloud Platform Live with a pretty impressive demo of Live Migration of virtual machines, which lets companies move workloads between compute instances without shutting them down. That’s not only a shot at AWS — which has no live migration — but at VMware, which has made Live Migration of VMs a cornerstone of both its on-premise and cloud proposition.

That’s not to say there were not glitches at what is the coming-out party for Google Cloud Platform as a for-real competitor to Amazon Web Services: The live stream feed went kaput early on, sparking an outcry on social networks. It appeared to be back online in relatively short order.

There was a lot of news to process here but a snap survey of attendees showed the sustained usage price model to be the big winner. They liked the idea of automatically calculated  (down to the minute) discounts being applied.

The sustained use model simplifies cost planning and optimization compared to AWS reserved instances, said Ben Whaley, director of infrastructure at Anki, a San Francisco-based company specializing in robotics and artificial intelligence (and an AWS user.)

Hölzle’s talk is in progress, and this story will be updated throughout the day as more information becomes available.

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  1. Hassan Hosseini Tuesday, March 25, 2014

    I did the comparison with AWS On-Demand and RIs, and I have to admit, very impressive! Here is the blog: http://www.rightscale.com/blog/cloud-cost-analysis/google-slashes-cloud-prices-google-vs-aws-price-comparison

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    1. thanks @hassan and @rightscale. i used your charts in a follow up story here: http://gigaom.com/2014/03/25/heres-the-google-vs-amazon-pricing-break-down/

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