Price cuts range from 30 to 85 percent. Google's Cloud Storage will cost 2.6 cents per gigabyte, about 68 percent lower for most customers. Google's Compute Engine services will cost 32 percent less across all sizes, regions and classes. Google Senior Vice President Urs Holzle said in a post on Google's official developers blog that the cost of virtualized hardware should fall in line with the cost of the underlying real hardware.
Holzle noted that hardware costs have improved by 20 to 30 percent during the past five years but that "public cloud prices fell at just 8 percent per year."
Cloud services are increasingly popular among tech startups and larger companies, which rely on computers owned and operated by the likes of Amazon and Google instead of buying the equipment themselves.
Amazon was among the first companies to recognize the opportunity of the cloud and its Web Services provide the underlying infrastructure for key aspects of popular Web companies such as online movie streaming service Netflix and social network Pinterest.