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Is the Google Cloud Pricing Strategy Really That Different from AWS or Microsoft? | 1redDrop

In an interview with CNBC, Tariq Shaukat, president of customers at Google Cloud, said: “We don’t need to compete on price to be honest. We definitely compete on value more than price … but if you look at the products, (they) are hard to compare side by side.”

But in the very next statement he says something that sounds the exact opposite, touting how there is a significant price advantage if you pick Google Cloud:

“We believe that our pricing models are much more friendly. So just simply by adopting the more flexible pricing models we have, things like billing by the minute rather than the hour, we think we can save a typical company 20 to 30 percent without having a unit price different to the competition.”

Companies in the cloud computing industry do know that pricing will only take you so far. If you don’t offer real value for whatever you charge, customers aren’t going to hesitate to migrate to another provider – especially in the early days, as their workloads are being migrated to the provider’s cloud infrastructure.

Tariq Shaukat is absolutely right in saying that if you don’t keep adding value, you will fall lower and lower in the eyes of the customer. But at the same time, there isn’t much room for play when it comes to pricing: you will have to stay as close as you can to the competition. And given a choice, go even lower if it’ll help generate more business volume.

And that’s exactly what Amazon and Microsoft have been doing for the past several years. Google Cloud is only now joining the price fight.

The real formula is this: Keep adding value to the services and products, but keep pushing prices as low as possible. Because if you don’t, someone else will.

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Is the Google Cloud Pricing Strategy Really That Different from AWS or Microsoft? – 1redDrop.