Google Says "No" in Benchmarking Amazon Cloud Computing Price War
Last year, Amazon and Google also lowered the price of some cloud products, and so did Microsoft this year. These three companies are struggling in the field of cloud computing. At present, Amazon AWS is the leader.
As they become more and more radical, the three companies seem to have a price war, which may even lead to a continuous decline in prices, which may lead to lower profits than business concerns.
But Tariq Shaukat, president of Google Cloud, said that the company did not have to compete with competitors Microsoft and Amazon on price. In an interview with foreign media, she said that the company's pricing structure allows enterprises to use the cost per minute, which is unique.
"In fact, we don't need to compete on price. Compared with price, we pay more attention to value. If you look at the products carefully, you will find it difficult to compare them. We believe that their pricing model is more friendly and flexible. For example, we can save 20-30% of the company's costs by charging per minute instead of per hour, so we don't have to compete with unit price competitors.
She also believes that it is incorrect not to consider the price delivered to the customer.
Data is key
For Google, value means telling potential customers and existing customers about their own data analysis, AI
Machine learning technology is the best. "Our technical capabilities in data management and machine learning are second to none," Shaukat said. "This is the key to attracting users to the cloud."
Google has been investing in artificial intelligence, such as acquisitions. The most striking thing is the Deepmind transaction of $400 million in 2014. But in addition, it has been trying to sell its own cloud computing products, such as cloud based documents, e-mail and calendar application suite G Suit.
But the general view is that compared with Microsoft and Amazon, Google's software application scope is too narrow and its product line is not rich enough. It should focus on the field, and need to launch more services in the software field to compete with Microsoft. These additional services can help increase revenue, gain more customers and maintain profitability.
By Amazon's standards
Nevertheless, Google Cloud has recently registered as HSBC
For such a big customer, other customers also package Spotify, Coca Cola, Snap, etc.
However, the specific performance of cloud services is still unknown. Google's "other income" from cloud computing income is not separate, but also includes hardware business. In the first quarter of 2017, other income increased by more than 49% to over 3 billion yuan. Compared with Google's other revenue, this is a relatively small business. At the same time, Amazon AWS contributed $3.6 billion in the first quarter.
Of course, Google's cloud continues to grow. So far, the cloud has invested 30 billion dollars. This year, we will also expand our services to several new areas.
Diane Greene, Google's cloud business unit, said that by 2022, the company might surpass Amazon. Shaukat mentioned the report of Deutsche Bank that cloud service providers only penetrated 5% of the IT market, so there is great room for growth.
"We can surpass the Amazon market for five years, because only 5% of the workload is in the cloud, and the current situation cannot predict what will happen in the future."
