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Google Cloud Storage rates slashed by up to 15%

Google's latest cloud storage price cuts indicate infrastructure costs will likely continue to drop.

On the heels of Amazon’s EC2 price cuts this week, Google announced some price cuts of its own.

Although the timing of the two price cuts is coincidental, it reflects a trend that continues to burgeon in the cloud space -- the constant quest to drive down costs and pass at least part of those savings along to the customer.

"In the cloud, it's getting more commoditized, so the cost of infrastructure is only going to go down," said Robert Mahowald, research vice president at IDC Corp., an IT market research firm.

In the cloud, it's getting more commoditized, so the cost of infrastructure is only going to go down.

Robert Mahowald, research vice president at IDC Corp.

Amazon Web Services (AWS) on Monday announced cuts of as much as 37% for Elastic Compute Cloud (EC2) customers on "reserved instances" term contracts as well as for some other services, although not for the company's Simple Storage Service (S3).

Google's latest cuts apply to users of Google Cloud Storage, the storage component of the search firm's cloud offering. The cuts are effective retroactively to March 1. The search giant said reductions were not related to Amazon cloud pricing cuts.

Google Cloud Storage price reductions range from 7.69% -- a drop of $0.01 from $0.13 to $0.12 per gigabyte -- for storing less than one terabyte, to 15% off -- a decrease from $0.10 per gigabyte to $0.085 -- to store between 100 and 500 TB, said Navneet Joneja, product manager for Google Cloud Storage.

Google Cloud Storage was launched as a technical preview in May 2010 and was commercially released in October 2011. The platform is built on technology Google had built for itself, Joneja said.

The price reduction can be attributed to Google's sales model, which focuses on resellers, Mahowald added.

"[Google's] primary play is with partner companies and large integrators," he said.

In fact, in announcing the price cuts, Joneja also highlighted several enterprise storage partners, including Panzura, StorSimple and TwinStrata, that have integrated Google Cloud Storage to work with their own products.

Stuart J. Johnston is Senior News Writer for Contact him at

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