Google Inc (NASDAQ:GOOGL) recently announced that the Google Cloud Platform would be available at a 30% lesser price, thereby restarting the war on cloud pricing. Just last year, Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT) and Google had battled for the cloud pricing taking the war to the lowest level. Although, the first quarter of this year was relatively quiet, with this new announcement, it seems that Google has now restarted the war by offering transformation of cloud services to the commodity priced services.
Google has said that the company has planned to reduce all Google Compute Engine Instance types prices. Hence, according to the search engine giant, the Google Cloud Platform will now be less expensive by 40% for many of the workloads. The exact reductions in the prices include 20% for standard, 15% for high memory, 5% for High CPU, 15% for small and 30% for micro.
To evaluate the context of this claim, around 451 Researches found that the average typical Web application price was around $2.56 per hour in the 2014 Cloud Price Index (CPI) fall. This average quote was gathered from a wide range of cloud providers and was based on the specification of a typical application of a multi-service cloud. Google Compute Engine, Microsoft Azure, and AWS could offer a bit cheaper prices averaging to $2.36 per hour.
Google to Introduce Virtual Machines
It means that it would take approximately $1.90 per hour for running a standard Google Compute Engine application. Google is also planning to introduce pre-emptible virtual machines (VM) of a totally new class. The VM delivers short-term capacity at a fixed, low cost. It will be especially designed for the short-term batch jobs.
Although the pre-emptible virtual machines will be almost similar to the regular VMs, they would be available depending upon the demand and supply of the system. One of the main reasons Google is offering the pre-emptible VMs at low cost is because the company runs this system on resources otherwise idle.
