4 Comments

Summary:

So, Google just took an axe to its cloud computing prices. Here’s how they stand up, as of Tuesday, compared to Amazon Web Services costs.

God bless RightScale. It did the math to calculate how Google’s new price cuts compare with current Amazon Web Services pricing so I didn’t have to.

And here are the results first comparing new Google pricing to one-year AWS Reserved Instances (RIs).

 

Google Vs. AWS RIs one year

And here’s the how Google stacks up against the even cheaper AWS three-year RIs.

 

goog vs aws 3

RightScale, based in Santa Barbara, Calif., has to stay on top of this stuff because it offers tools and consoles that help companies monitor and manage multicloud deployments and to forecast costs.  More details are available on the Rightscale blog. 

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  1. The Google pricing is much better in many ways:

    – There’s no upfront cost. That’s the whole point of the cloud – you don’t have that initial capex!
    – It’s a % of the fees, not an absolute number, so as prices change over time then you get the new rates. As highlighted in the Rightscale blog, you don’t necessarily get that with Amazon.
    – You don’t need to think about the Google pricing, it just happens. With AWS you have to consider your utilisation model, 1 vs 3 year, whether you need that capacity in the future and if not, how will you sell it back? i.e. the same questions if you buy your own hardware

    This is a radical change and probably something AWS can’t respond to immediately, unless they too have come up with a novel way they’re now going to price everything independently that they were going to announce tomorrow anyway!

    1. I agree with your points David. I’ve been an AWS user for the past 4 years and am now embarking on a startup venture. These charts don’t tell the incredibly compelling story that google is offering to startups who can’t easily work with the AWS model. Surely, AWS will respond, as they always do, however we are banking Google’s developer-oriented approach and scale to drive value for us.

  2. Michael W. Perry Wednesday, March 26, 2014

    Not surprising. I heard one of Amazon’s AWS guru’s speak a couple of years ago. His remarks centered on how much cheaper web services are to provide now than just a few years ago.
    The real issue isn’t the resulting fierce competition between web service providers. It’s why retail services hosted online aren’t changing their pricing. Assuming Amazon, Apple and their kin were making a decent profit from their app, music and ebook stores a few years ago, which seem probable, then they must be making money by the bucketful now. And that means that they could easily change that 70-30 split of the purchase to 75-25 or even 80-20. And the first to do that is likely to reap a competitive advantage as developers, musicians, and authors adopt a ‘them first’ policy.

  3. A problem that is raised with the Amazon pricing model of requiring an upfront investment to get the lowest hourly prices.

    However, I think it should also be pointed out that the reserved instances that are no longer needed can be sold back on a market-place, granted Amazon takes a transaction-fee, but it still addresses much of the critiscism of Amazon’s model.

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