Allowing individuals, small businesses and large firms to host applications on a complimentary offering would be the next logical step for Google. But that would bring it in direct competition with Amazon? If that were to happen or actually happens, then what are Amazon’s competitive advantages? On the technical infrastructure and customer support front, Amazon might not have any advantage. But Amazon offers a lot of semi consulting services for firms interested in hosting application such as supply chain management, customer experience management and payments ( all thanks to its experience with doing actual business). So, this business + technical offering would still place Amazon ahead of Google in terms of value proposition. But surely, different customers have different needs. Maybe, Google will get more competitive and may be a superior supplier for people and firms who are looking for the pure technical infrastructure for various purposes such as testing and development.
At last year’s Google I/O developer conference, Google launchedCompute Engine, a cloud computing platform that allows developers to run their apps on Linux virtual machines hosted on Google’s massive infrastructure. This was a limited launch, however, and developers had to either get an invitation or go through Google’s sales teams to get access to this service.
The support package, of course, only gives developers the ability to use Compute Engine; they will still have to pay the usual usage-based fees to access the infrastructure. The good news is that with today’s announcement, Google is also dropping all of its instance prices by 4 percent (that’s after it already dropped storage prices by 20 percent…
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