Mar 08, 2012

What are the chances that Cloud providers will continue to cut prices?

We just got notice yesterday that our Google Cloud Storage costs will be getting cheaper by about 10%. All right, I'll take it. Other than natural gas, I haven't seen many things getting cheaper recently. For example, the amount we pay to our wireless provider increases over time, with new charges and limits popping up on a fairly regular basis that makes me admire their creativity, if nothing else. Is this likely to be a cost trajectory that will continue with Cloud prividers, or is Google just trying a short term price cut to increase their market share?

There's a lot of competition right now among cloud providers, so it probably makes sense to cut prices to increase or protect market share. But will it continue? I doubt it. At some point they'll go as low as they can go, and some companies will not survive.

But the ones that do survive will do well over time as the cloud market consolidates.

It's not any different than marketing any other product service...supply and demand. I feel you are right in one regard, where Google is looking for market share.


As the number of cloud storage competitors increases, the prices will drop. However, at some point in the near-future, just like everything, the low-quality service providers will get weeded out, hence, a rise in price will occur.


How I look at Cloud-based services...is it needed, really needed?


Gus Miles


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