Deflation or Price War? You Decide
November 12, 2009
Stan Schroder’s “Google Cuts Prices of Cloud Storage, Increases Cap to 16 Terabyte” summarizes a Google pricing action. Mr. Schroeder writes:
We’re talking about extra storage; for example if free storage that comes with Picasa Web Albums or Gmail isn’t enough for you, you can purchase extra storage space for a price. Today, Google is dramatically slashing that price.
Interesting but not as interesting as thinking about the implications of a price cut. The economy remains uncertain. Competition in the buzzy cloud world is increasing. Google chops prices as Amazon did recently and boosts capacity. Are there implications? Sure there are, but the write ups steer clear of the core of this action. My hunch is that it is neither deflation or a price war. I keep thinking about the behavior of the hungry big cats when the herd of gazelles galloped along. Snack time?
Stephen Arnold, November 11, 2009
No one paid me for this observation about nature red in tooth and claw. The goose is a gentle creature, but he will alert the Department of Transportation that this was an uncompensated endeavor. Yikes, I smell hot tar on the information highway.
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