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November 26, 2012

Google Cuts Prices on Compute Engine in Effort to Kill Amazon's Cloud

In an effort to more successfully compete with rival Amazon Web Services (News - Alert), Google is slashing the prices on its Compute Engine, which has not received the attention the Internet giant set out to acquire when it launched the cloud product in June.

In fact, Google (News - Alert) just dropped its prices by five percent, according to Shailesh Rao, director of new products and solutions in the Google Enterprise unit. The new prices are set to take effect on Dec. 1, 2012. In addition, Google has added new configuration options to make it similar to Amazon’s cloud, Business Insider reported.

Compute Engine is designed to run large-scale computing workloads on Linux virtual machines hosted on Google’s infrastructure. However, technically, Compute Engine remains in “limited preview” mode – a.k.a. beta testing – which means that wary startups have not stepped up as quickly as Google has hoped.

When Google launched Compute Engine five months ago, company officials said it would offer “50 percent more power per dollar” than Amazon.

In July, Google launched its Google Cloud Platform Partner Program designed to help third-party vendors use and sell Google cloud services, TMCnet reported. Within this program, Google provides partners with the tools, training and resources they need to successfully address their business’ IT needs, according to Eric Morse, Google's head of sales and business development for the Google Cloud Platform.

Additionally, the search engine giant Google has unveiled two distinct types of partners in this program which include service partners and technology partners. The Google Compute Engine allows partners to offer management services to help clients configure and manage applications running on Google’s infrastructure.

Since cloud computing emerged in the last few years, two distinct paths for enterprises considering their cloud infrastructure choices have been created. One path is that of the enterprise virtualization cloud, and the other is the elastic infrastructure cloud, according to Cloudscaling CTO Randy Bias.

An enterprise virtualization cloud (EVC) is a cloud built on infrastructure that supports legacy enterprise applications like those built on SAP and Oracle (News - Alert). Whereas, an elastic infrastructure cloud (EIC) is one that is exemplified by web-scale Internet giants such as Amazon Web Services, Google Compute Engine and the captive infrastructures built and operated by companies like Facebook (News - Alert), Bias explained in a recent Cloud Computing magazine article.

“Both cloud infrastructure types are useful and can deliver value. However, these two types of cloud infrastructure are very different creatures,” Bias said. “Enterprise buyers need to know how to recognize each type, and they need to understand which cloud infrastructure is best suited to solving their particular problems.”

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Brooke Neuman

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