Boston, MA 07/28/2014 (wallstreetpr) – Cloud computing continues to attract both small and big companies due to the growth prospects that it commands, as well as increased revenue streams. Amazon.com, Inc. (NASDAQ:AMZN) has essentially felt the impact of increased competition in the space especially from internet giants like Google Inc. (NASDAQ:GOOGL) and Cisco Systems, Inc. (NASDAQ:CSCO) which have increased their investments in the space. Amazon ceo, Jeff Bezos, had resorted to using cost-cutting tactics as a way of attracting new clients, the competitors have also started employing the same tactics as a way of attracting elusive client’s further throwing competition in the space to another new level.
Price Reductions in the Cloud
Google’s move to cut its cloud prices by 53% undercut Amazon by a huge margin taking into consideration there has also been an influx of smaller players in the same space. After Google had reduced its prices by 53%, Amazon also followed suit, reducing its prices by half, as a way of keeping its clients happy. Microsoft Corporation (NASDAQ:MSFT) under the new leadership of, Satya Nadella, has also promised to focus on the cloud, consequently reducing prices as a way of remaining competitive.
Price reductions have already had an impact on Amazon AWS business which reported reduced revenues for the first and second quarters of the year. Amazon’s revenue on the cloud has considerably underperformed, despite growing at a respectable rate. The growth Potential of the cloud remains strong as more companies shift from managing their own technology on the computer to renting the same.
It is clear that all the challengers in the cloud will have to embrace the strategy of high-volumes and low-cost model for cloud computing, if they are to gain a sizeable amount of market-share from the likes of Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc. (NASDAQ:GOOGL). Competition is set to become even tougher in the coming months as more companies continue to embrace the cloud platform with a view of looking for a service that is cheap and reliable.
