Google slashes Compute Cloud pricing, calls for industry to follow Moore’s Law

Google is cutting the price of its cloud computing offering in a move that could see Microsoft and Amazon make similar moves in the packed cloud space.

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Urs Hölzle, senior VP for technical infrastructure at Google, told Google’s Cloud Platform Live event that his vision for the cloud computing market will follow Moore’s Law and become cheaper has not played out and that dropping Google’s Compute Cloud price will be a part of this.

"We are really resetting the price to be much more in line with Moore's Law. These price changes are not one time. The prices should follow Moore's law," he said, according to Cloud Pro. "Pricings have been falling by six to eight per cent per cent but hardware costs have dropped 20-30 per cent. There is easily a factor of two between the two. The gap should be nowhere this large."

As part of the move, Google will reduce the price of its Compute Engine products by 32 per cent as well as its Cloud Storage products by 68 per cent, which will mean storage is priced at 2.6 cents [2p] per GB. This wasn’t the biggest reduction though as the price of its BigQuery product dropped by 85 per cent and that came with guarantees related to performance and throughput. Hölzle also explained that companies that use a virtual machine more frequently each month will be eligible for discounts.

"Once you use a VM for more than 25 per cent per month, every minute becomes cheaper. When you use a VM for an entire month, you save an additional 30 per cent over the new on-demand prices, for a total reduction of 53 per cent over our original prices," he added.

It wasn’t all about the discounts, Google also announcing platform support for Windows Server 2008 R2, RedHat and Suse, as well as new features geared towards developers to allow them to build, test and release in the cloud with minimal setup or changes to the workflow.

Related: Google allays PRISM fears with automatic encryption for Google Cloud storage

"There are a lot of ways where the promise of the cloud has not been fully met. We want to help developers be more productive," Hölzle added.