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Price war on the cloud

by on27 March 2014

Amazon follows Google

There is a price war on Cloud services at the moment, with Amazon following Google in cutting its prices. said it will drop prices on most of its cloud computing services starting April 1a day after rival Google outlined a major price cut of its own. Microsoft has also made cuts lately.

The price cuts range from 10 percent to 65 percent, Andrew Jassy, senior vice president of Amazon Web Services. This marks the 42nd price reduction for AWS since its introduction eight years ago. AWS provides the underlying infrastructure for popular Web companies such as online movie streaming service Netflix and social network Pinterest.

Amazon pioneered public cloud computing in 2006, remains a dominant force in the industry. Its fast-growing AWS business helped transform the company from traditional online retailing into a tech industry giant, and is often cited by investors as a major pillar of its future growth. AWS has five times the computing power of its 14 rivals combined.

This week Cisco announced plans to spend $1 billion over the next two years to build a new cloud services business, but it might be far too late.

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