Google Cuts Compute Engine Pricing Once Again

Google's move is likely to spur other big cloud providers to do the same

Jason Verge

October 2, 2014

1 Min Read
Google Cuts Compute Engine Pricing Once Again
Cold aisle at a Google data center (Photo: Google)

Google announced (once again) across-the-board cuts to Compute Engine pricing. It’s been half a year since the formal launch of its Infrastructure-as-a-Service offering, which itself came with a dramatic price reduction relative to others in the market and prompted others to follow suit.

Cuts were made to U.S., Europe and Asia pricing, with Europe and Asia marginally higher (100ths of a cent). Providers with the largest cloud platforms, such as Amazon Web Services, Google Cloud Platform and Microsoft Azure, continue to make aggressive cuts.

These clouds have the scale to compete in the increasingly commoditized raw cloud computing world. Big scale means operational efficiency and a higher margin to play with.

In the U.S. pricing dropped by 10 percent, or seven tenths of a cent for the standard virtual machine -- from $0.07 to $0.063. While the reduction doesn’t seem like much, it adds up with lengthy and large deployments. High-memory instances dropped from $0.082 to $0.074, while high-CPU instances dropped from $0.044 to $0.040.


The new cloud price cuts (source: Google Blog)

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