Executive Briefings

Will Price Cuts Make Cloud Services More Attractive to Companies?

Google has dropped its cloud computing prices and other vendors are expected to follow suit, but the lower pricing may not be the key lure for attracting enterprises to the cloud.

Will Price Cuts Make Cloud Services More Attractive to Companies?

Enterprises want to save money, but when it comes to cloud computing, they're more concerned about reliability and security.

"I don't think this is a large enough price cut to move a lot of enterprise computing into the cloud," said Dan Olds, an analyst with The Gabriel Consulting Group. "When it comes to public clouds, there are factors that are more important to enterprises than capacity price. Security, reliability, performance and quality of service demanded by a particular workload are often the most important factors for enterprise customers looking to move an application to a cloud."

Google announced widespread cloud price cuts on Wednesday. The company is cutting prices for its Google Compute Engine by about 10 percent for all instance types in every region. The price cuts are effective immediately.

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Enterprises want to save money, but when it comes to cloud computing, they're more concerned about reliability and security.

"I don't think this is a large enough price cut to move a lot of enterprise computing into the cloud," said Dan Olds, an analyst with The Gabriel Consulting Group. "When it comes to public clouds, there are factors that are more important to enterprises than capacity price. Security, reliability, performance and quality of service demanded by a particular workload are often the most important factors for enterprise customers looking to move an application to a cloud."

Google announced widespread cloud price cuts on Wednesday. The company is cutting prices for its Google Compute Engine by about 10 percent for all instance types in every region. The price cuts are effective immediately.

Read Full Article

Will Price Cuts Make Cloud Services More Attractive to Companies?