Kaboom! Amazon and Google’s Cloud Storage Wars are Underway

With the decision to lower prices for its S3 storage service by 24 to 27 percent, Amazon (NASDAQ:AMZN) has initiated another round of cloud storage wars with Google (NASDAQ:GOOG).

Where Does Google Stand?

While Amazon is currently considered the undisputed leader of the cloud infrastructure market, Google challenged the Internet retailer on Monday by lowering the price of its Compute Engine service by 5 percent and offering 36 new memory and storage tiers. Yet, despite Google’s claims to the contrary, its service is not quite on the same level as Amazon’s because it is still in limited preview or beta mode. According to Business Insider, this fact has made startups wary of Google’s Compute Engine, even though the service runs on the same data centers servers that power Google search

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Why Did Amazon Cut its Prices?

Amazon Web Services’ inaugural re:Invent conference in Las Vegas, the division’s senior vice president Andy Jassy explained the reasoning behind the price cuts: with the company’s sheer cloud computing infrastructure bulk and customer base, Amazon has the ability to lower costs as it adds economies-of-scale and cut scales. “We’ve lowered prices 23 times since 2006, he said. However, his explanation made no mention of Google.

The company had other news for those investors who attended the conference. AWS announced that it has partnered with the storage service provider NetApp (NASDAQ:NTAP) in order to deliver more hybridized cloud services to its clients. NetApp products will enable “enterprises to build an agile cloud infrastructure that balances internal datacenter resources along with AWS cloud resources to best meet their business needs,” the company stated in a press release.

CHEAT SHEET Analysis: Does Amazon Have a High Quality Pipeline?

One of the core components of our CHEAT SHEET Investing Framework requires that companies consistently produce successful products or services. Even though Amazon is considered to be the best infrastructure-as-a-service provider, the company has continued to expand and improve its business. It precisely because Amazon continues to innovate, as AWS intended to suggest with the naming of its conference, that the company became an industry leader.

Don’t Miss: Here’s How Apple and Google Are Winning the Enterprise War.

More Articles About:   , , , , ,  

More from The Cheat Sheet