• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechPointCloud

Google To Amazon: Our Cloud’s Still Cheaper

Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
Barb Darrow
By
Barb Darrow
Barb Darrow
Down Arrow Button Icon
January 8, 2016, 5:22 PM ET
Google Hosts Its Annual I/O Developers Conference
Urs Holzle, Senior Vice President for Technical Infrastructure at Google, speaks on the Google Cloud Platform during the Google I/O Developers Conference at Moscone Center on June 25, 2014 in San Francisco, Photograph by Stephen Lam — Getty Images

Amazon, Microsoft, and Google aren’t slashing cloud prices as fast and furious as they did two years ago, but there’s still plenty of smack talk going on.

For example, Google (GOOG) on Friday took to its cloud blog to proclaim that its cloud computing service is less expensive than comparable Amazon (AMZN) Web Services products.

MORE: On cloud price cuts.

To back up a bit, AWS trimmed prices 5% on Tuesday for some Elastic Compute Cloud instances, its 51st cost cut to date across all its services. Elastic Compute Cloud (EC2) is Amazon’s term for units of computing power that it sells or rents to customers. EC2 “instances” are the cloud equivalent of a computer’s central processing unit.

Three days later, Google pointed out that its most comparable custom machine types (Google’s term for cloud computing resources) remain 15% to 41% less expensive than Amazon’s latest price, depending on configuration. And, it provided a helpful comparison chart.

gcp price

Of course this is a discussion that high-level executives may not care about, but the accountants in the chief information officer’s office need to keep an eye on cloud costs. Cloud usage is initially cheaper than buying a lot of hardware and software to run in-house, but hey it still costs money.

WATCH: How Amazon took over the cloud in this Fortune video:

Public cloud computing is the model in which businesses rent computing, storage and networking capacity running in massive data centers run by Amazon, Google, or Microsoft (MSFT), typically seen as the Big 3 in this market. The beauty from the customers’ point of view is they can tap into this huge pool of power without actually having to buy the servers, software, and storage themselves.

The downside is that while the cost is initially cheap, controls can be loose, and mission creep sets in. Developers, for example, can set up computing resources for a job and then forget to shut them down again. Oops!

SIGN UP: Get Data Sheet, Fortune’s daily newsletter about the business of technology.

So price matters when it comes to big cloud buyers, but perhaps a bigger deal for these big companies is making sure they get the sort of service and support from their suppliers that they’ve gotten used to from vendors like IBM (IBM) and SAP (SAP). Who’s responsible, for example, if computing capacity shuts down unexpectedly, for example?

It’s in this arena of appealing to big customers that Google really faces an uphill battle.

Amazon has made headway providing IT-friendly tools like Trusted Advisor, which counsels users on how to make the most of their cloud resources. It also offers consoles that make AWS less foreign to existing network administrators and IT folks.

Microsoft, which is seen as No. 2 in public cloud after Amazon, already has lots of customer relationships in place—what Fortune 500 company is not already a Microsoft shop? But, in this arena, Google, which makes most of its money from search and advertising, still has a lot of work to do.

That’s one reason it brought in former VMware (VMW) CEO Diane Greene to lead its cloud business.

About the Author
Barb Darrow
By Barb Darrow
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

These startups are racing to make AI safe for the Pentagon’s most closely guarded secrets
AIDefense
These startups are racing to make AI safe for the Pentagon’s most closely guarded secrets
By Erik GermanApril 11, 2026
10 hours ago
karp
Future of Workpalantir
Palantir CEO says AI ‘will destroy’ humanities jobs but there will be ‘more than enough jobs’ for people with vocational training
By Jacqueline MunisApril 11, 2026
11 hours ago
A Starbucks barista stands behind a cash register.
RetailFood and drink
Starbucks’ game plan to roll out AI chatbots at cafés could serve as a ‘litmus test’ for the industry, analyst says
By Sasha RogelbergApril 11, 2026
11 hours ago
The ‘Tuscan Mom’ aesthetic is taking over TikTok as Gen Z glamorize McMansions and reject millennial gray
Travel & LeisureGen Z
The ‘Tuscan Mom’ aesthetic is taking over TikTok as Gen Z glamorize McMansions and reject millennial gray
By Sydney LakeApril 11, 2026
11 hours ago
dalmation
AIHealth
Man’s best friend may soon live a little longer thanks to a new pill promising to extend your pup’s lifespan
By Catherina GioinoApril 11, 2026
12 hours ago
hunt
CommentaryMedia
OpenAI’s TBPN deal shows how talent, media, and influence are collapsing into one
By Jonathan HuntApril 11, 2026
13 hours ago

Most Popular

Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
Success
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
By Fortune EditorsApril 10, 2026
1 day ago
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
Politics
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
By Fortune EditorsApril 10, 2026
24 hours ago
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
Real Estate
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
By Fortune EditorsApril 11, 2026
14 hours ago
Warren Buffett says 'accumulating great amounts of money' doesn’t achieve greatness—He still lives in a $31,500 Nebraska home and clipped coupons
Success
Warren Buffett says 'accumulating great amounts of money' doesn’t achieve greatness—He still lives in a $31,500 Nebraska home and clipped coupons
By Fortune EditorsApril 11, 2026
11 hours ago
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
Innovation
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
By Fortune EditorsApril 10, 2026
2 days ago
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
Investing
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
By Fortune EditorsApril 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.