Microsoft, Amazon Web Services (AWS) and Google are considered the leaders in the cloud space and may have reportedly just engaged in a battle over who will offer the lowest price to customers.
According to ZDNet, discounts for cloud computing solutions have been solely placed on virtual machines, but prices relating to storage and databases may soon see a cut. A recent analysis of pricing completed by 451 Research found that the enterprise will see the discounts over the next year and a half.
The firm’s analysts said that object storage pricing has gone down across all regions about 14 percent over the past year, and in the same time period, virtual machine prices have fallen five percent. Cold storage started its descent toward the end of 2016 with IBM’s SoftLayer’s object storage price reduction. Then AWS, Google and Microsoft jumped on the bandwagon.
“The big cloud providers appear to be playing an aggressive game of tit-for-tat, cutting object storage prices to avoid standing out as expensive,” Jean Atelsek, digital economics unit analyst at 451 Research, told ZDNet.
He went on to say that there hasn’t been a major price war outside compute in this space before and that the emergence of this competition “reflects object storage’s move into the mainstream.”
Vendors are trying to lower their storage prices in order to gain the business of enterprises that are migrating large workloads out of data centers and into the cloud. The savings are great for those in the market for a new solution, but are the vendors losing out? ZDNet says that the providers still appear to be making a 30 percent margin on virtual machines, even after several cuts in price.
So will this be an all-out price war? Check in with us to find out.
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