Last year, Amazon and Google have reduced the price of some cloud products, Microsoft this year as well. The three companies are struggling in the field of cloud computing, the current Amazon AWS in the lead.
As the more and more radical, the three companies seem to play a price war, and even caused a sustained decline in prices may cause low profits on the business concerns.
But Tariq Shaukat, president of Google Cloud, says the company does not have to compete with rivals Microsoft and Amazon in price. She said in an interview with foreign media, the company's pricing structure allows enterprises to use the cost per minute is unique.
"In fact, we do not need to compete on price." Compared to the price, we pay more attention to value. If you look at the product carefully, you will find it difficult to compare with each other. We believe that our pricing model is more friendly, through a more flexible pricing model, such as the use of each minute rather than the hourly charges, we can save a company 20-30% of the cost, so do not have the price and the opponent competition. & Rdquo;
She also believes that looking at the price without paying attention to the value delivered to the customer is not the right way.
Data is the key
And for Google, the value means telling potential and existing customers that their own data analysis, artificial intelligence and machine learning techniques are the best. Shaukat said: "Our technical competence in data management, machine learning is second to none, and this is the key to attracting users to the cloud." & Rdquo;
Lei Feng network learned that Google has been in the acquisition of such vigorously invest in artificial intelligence, one of the most notable is the 2014 $ 400 million Deepmind deal. But beyond that, it has been trying to sell its own cloud computing products, such as cloud-based documents, e-mail and calendar application suite G Suit.
But the general view is that compared with Microsoft and Amazon, Google's software application range is too narrow, the product line is not rich enough, and this should be it should focus on the field, the need to launch more services in the software field, with Microsoft competition. These additional services can help increase revenue, get more customers and stay profitable.
On the standard of the Amazon
Despite this, Google Cloud has recently signed a large customer such as HSBC, and other customers include Spotify, Coca-Cola, Snap and so on.
But the specific performance of cloud services is still unknown, Google will cloud computing revenue on the "other income" there is no single, which also includes the hardware business. In the first quarter of 2017, the other income grew by more than 49 percent to more than $ 3 billion. Compared to Google's other income, it is a relatively small business. At the same time, the first quarter Amazon AWS contributed $ 3.6 billion.
Of course, Google's cloud continues to grow, so far in the cloud has invested 30 billion US dollars. This year it will also expand the service to several new areas.
Google Cloud business unit Diane Greene has said that by 2022 the company may go beyond Amazon. Shaukat mentions Deutsche Bank's report that cloud service providers have only penetrated 5% of the IT market, so there is a lot of room for growth.
"In five years we can go beyond Amazon in the market, because only 5% of the workload is in the cloud. The current situation can not predict what will happen in the future. & Rdquo;