The Google Cloud: Low Ceiling, Visibility Limited
June 30, 2015
I read “Google Cloud Platform: Google Execs Speak.” I highlighted one passage. In response to a question about recent Google cloud service price cuts, the Googler Brian Stevens said:
Our [pricing] is, to be honest, completely driven by measurable infrastructure improvements. So the numbers that you’re seeing aren’t even looking at the competition. They’re looking at the efficiencies. We actually can cost out all of our ongoing infrastructure for our platform, which we actually charge back to the group… We actually modeled those [costs]. We built our plans for next year. We have a set of goals around infrastructure efficiencies that we’re going to drive next year as well. Those [costs] are mapped right back into further and further discounts. So the model, for us, will continue.
I assume that Amazon will remain competitive with Google as both companies try to create value adding services. How low will Google cloud prices go? The suggestion that Google pays little attention to the actions of its competitors strikes me as interesting. I am sensitive to the words “honest” and “actually.”
Stephen E Arnold, June 30, 2015
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