Google Aligns Cloud Pricing With Moore’s Law
Speaking at Google Cloud Platform Live on Tuesday morning, Urs Hölzle, senior vice president of technical infrastructure at Google suggested that cloud pricing schemes should mimic hardware and "follow Moore's Law".
The Web giant observes that cloud pricing hasn’t followed Moore’s Law. Cloud prices are falling by 6 to 8 percent year, while hardware prices have dropped by 20 to 30 percent. Hölzle notes that the two curves shouldn’t be identical since there are maintenance costs associated with running a cloud, but they should be closer together.
Sounds like major price reductions coming up by Google, Amazon and Microsoft....This is great news for consumers of cloud, bad news for traditional IT companies which are used to big, fat profit margins.
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