Cloud computing can only rely on price cuts for customers

Cloud pricing strategy After Google, Amazon and now Microsoft confirmed that companies to migrate to the cloud is not a simple cost savings.

In Friday, http://www.aliyun.com/zixun/aggregation/14046.html "> Microsoft Azure Storage Price cut paid services and lowered its 6-month storage plan price. The extra cost of using Azure is down by half.

Earlier this week, Google cut prices for its cloud storage services, Amazon Network Service elastic Compute Cloud, relational Database service, ElastiCache and elastic Map reduce price declines. Amazon stressed that the implementation of a new price reduction strategy for large companies to reduce costs.

One expert says service providers are trying to persuade potential new customers to migrate to the cloud model by cutting prices.

"It's a myth to be cost effective on cloud computing," says David Linsickm, chief technology officer at the Blue Mountain Laboratory responsible for corporate migration to the cloud. ”

He argues that service providers such as Amazon may have done so because they have listened to potential customers, saying: "They are losing the business of hardware and software consumers because they are cheaper than renting services, so they have to cut back on market defections by lowering prices." ”

Linthicum that Amazon, Microsoft and Google are competing to cut prices, and that prices are big. He pointed out that cloud services are not their main business, but they have won the customer identification is an important way to improve customer loyalty, because it is difficult to guide customers migrating to cloud services, so the future price reduction will also be the main means to attract customers.

Domicity, vice president of the company responsible for consulting and analysis of corporate behavior Mark Obrain, said the price reduction may lead to other adverse reactions, saying: "The competing development of service providers may cause the public cloud hosting capacity surplus." ”

Amazon has continued to slash prices (this has been the 19th price cut), which is a competitive strategy. "Perhaps they have the best cost structure in the public trust industry and are trying to squeeze out competitors by building up a price mechanism that is good for them in the industry," said O ' Brien. ”

He said that with the growth of Microsoft, Google and Amazon, it is possible to host more large enterprises in the future, such as HP and telecom operators.

(Responsible editor: The good of the Legacy)