The original promise of cloud computing was simple virtualize hardware, pay only for what you use, with no upfront capital expenditures and lower prices than on-premise solutions.
But pricing hasn’t followed Moore's Law over the past five years, hardware costs improved by 20-30% annually but public cloud prices fell at just 8% per year.
Cloud pricing should track Moore’s Law, then Google simplifying and reducing prices for our various on-demand, pay-as-you-go services by 30-85%:
- Compute Engine reduced by 32% across all sizes, regions, and classes.
- App Engine pricing is drastically simplified. We've lowered pricing for instance-hours by 37.5%, dedicated memcache by 50% and Datastore writes by 33%. In addition, many services, including SNI SSL and PageSpeed are now offered to all applications at no extra cost.
- Cloud Storage is now priced at a consistent 2.6 cents per GB. That’s roughly 68% less for most customers.
- Google BigQuery on-demand prices reduced by 85%.
This is an exciting time to be a developer and build apps for a global audience. Now a days Google focused a lot on productivity, making it easier to build and test in the cloud, using the tools you’re already familiar with.
Managed VMs give you the freedom to combine flexible VMs with the auto-management of App Engine. BigQuery allows big data analysis to just work, at any scale.
And on top of all of that, Google making it more affordable than it’s ever been before, reintroducing Moore’s Law to the cloud: the cost of virtualized hardware should fall in line with the cost of the underlying real hardware.
And you automatically get discounts for sustained use with no long-term contracts, no lock-in, and no upfront costs, so you get the best price and the best performance without needing a PhD in Finance.
Author Venkatesh Yalagandula Follow us Google + and Facebook and Twitter
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