Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) began a fresh round of one-upmanship on Friday. Google’s latest post on its cloud services proclaims that it continues to be lower priced in comparison to Amazon Web Services.
Price-wars
The cloud services spectrum has seen intense price-wars as big technology players position themselves as low-cost and value-added services providers.
The latest cache of such price-trims was on Tuesday, when Amazon’s flagship cloud services, AWS cut prices by nearly 5% on its Elastic Compute Cloud (EC2) instances.
Technically this is ecommerce giant’s 51st cost-cutting offer on the total selling and renting of cloud services.
Alphabet Inc (NASDAQ:GOOGL) responded to the price-cut with price comparison chart, which attempts to prove that it is 15% to 41% cheaper.
For businesses, especially CIOs who follow pricing details keenly, the comparative prices that Google offers could prove to be crucial in the type of service and the vendor they chose. Though the prices themselves are not the issue, since third party cloud services prices are more ROI than company-run cloud hardware and software solutions, the comparative pricing does hold influence decision makers.
Cloud’s Big 3
Cloud services are rented, leased as public cloud computing services by three dominant players currently. Apart from Alphabet Inc (NASDAQ:GOOGL) and Amazon.com, Inc. (NASDAQ:AMZN) a third competitor here is Microsoft Corporation’s (NASDAQ:MSFT) Azure Cloud Services.
But in terms of the backend, Supplier-level support for cloud hardware and software functioning, Google Inc lacks the resilience of both Amazon.com as well as Microsoft.
While Microsoft has its legacy partners like IBM or a SAP to handle tough challenges such as ‘computing capacity’ failure. Unfortunately for Alphabet Inc (NASDAQ:GOOGL) it lacks IT-tools like Trusted Advisor by Amazon.com or Microsoft more sophisticated tools. Google Inc is already working on solutions for this issue. It has appointed one of the veterans at VMware, CEO Diane Greene to provide the depth in its Cloud Services.
