Is the Google Cloud Pricing Strategy Really That Different from AWS or Microsoft?
Google is the perfect example of a late bloomer in the cloud services. Google Cloud was way behind in the initial days because of arriving late in the business, but it has been up to the task against names like Microsoft, Amazon and IBM. It has been expanding its services in its own niche areas, but it is surely up against the giants and hence, this is not going to be easy. In an industry like IT where these players have existed for decades now, Google is one of the big names despite its singular presence in the web business and hence, it has to make its way in an incredibly competitive environment.
Often, the differences are negligible and hence, it is important to review whether Google has anything special to offer or is it just joining the fray as one of the big names. Amazon surely is leading because it started way back in the early days of cloud and risked a lot to reach this position. Innovation, however, is not enough since it takes a few months before other competitors find out your secret and arrive at your point. So, you need to be on the run.
What the bosses say
However, it is important to note what the top names are saying about Google cloud. Of course, they claim that they concentrate more on value than price and their products are just as good as others. However, they consider Google cloud to be a cheaper option because they are, as always, more flexible and allows you to pay exactly what you use, boiling down to minutes.
The claim to save nearly 30 percent of the price a company usually pays is a stupendous claim as that will surely attract a host of companies. However, you have to back it up by providing valued services or the customers will simply move to a more suitable service. So, sacrificing the profit to attract more business is a common strategy during the beginning and hence, its pricing is apparently lower than the rest.
The best scenario for enterprises
That opens up wonderful opportunities for enterprises who are taking to the cloud. Everyone is forced to keep their pricing at a minimum without adding any premium package to their pricing. Since cloud is still at its formative stage, pricing will matter as a lot of IT business is yet to move to cloud and these new customers can surely change the fortune of one of the players or another.
However, no matter what services it provides, Google Cloud will have to make their mark through value addition rather than providing low prices. Often, cheap services are mistrusted by customers as they may end up not providing some necessary elements. While Google’s brand name helps in this regard, any kind of fault can turn the tide within hours. So, Google must focus on building a customer base now that it has provided an affordable service by aiming for services of the finest quality.