Recent Price Cuts in Cloud Computing Services

by Vincent S
In recent weeks, the three major players in cloud computing services have all announced price cuts to their more basic service packages.  Google, Amazon, and now Microsoft have all announced a coming price drop in their online data storage services.  Most analysts in the industry speculate that the reason for dropping prices is to attract new businesses to convert to a cloud computing setup.  Although many new businesses have switched to cloud computing services, many companies with legacy systems continue to avoid conversion to the cloud.  As stated in PC World magazine, David Linthicum, CTO of Blue Mountain Labs, does actually agree that cloud computing is always the cheapest solution.  His belief is joined by many other experts in the field who argue that legacy systems have the advantage of using software and hardware solutions that can substitute for cloud services.  By avoiding the strict licensing terms of cloud services, businesses can in some circumstances save money by avoiding the cloud.
For me, this article reaffirmed what I already believed.  Cloud services are amazing and of course represent the shift of technology in this century.  However, it has not yet reached the point of complete feasibility.  There still exist many situations in which cloud computing may not be the best solution for your business.  I know that one day cloud services will completely take over and leave no other solution.  But in the mean time, companies that are providing cloud services have to raise awareness and compete with non cloud solutions.  At this point, they do not have total market penetration and these recent price drops show their attempts to expand the market.  I will even go as far as to say that their recent price drops are part of bigger plan to create the illusion that cloud computing is the absolute cheapest and easiest solution which is still not yet true.  The reality is that cloud computing can be very expensive, despite that, it is a growing trend that will dictate the technology of the future.



Gohring Nancy. (2012, March 09). Pcworld. Retrieved from

5 thoughts on “Recent Price Cuts in Cloud Computing Services”

  1. I agree that cloud computing hasn’t reached the point of complete feasibility. Due to the fact that there are still companies out there that will save money by not switching from their legacy systems, and also because in some cases cloud computing can be less energy efficient than conventional computing. Along with dropping prices, they should also put in some R&D into more all around energy efficient solutions for cloud computing.

  2. I agree with the OP that cloud computing is yet still expensive. Since it’s still fairly new, and securing something that is logical and not physical is pretty costly, and therefore, I believe the end user will be faced with higher expenses than expected. For example, if I wanted to purchase more cloud space with Apple, they wanted to charge me an arm and a leg for only a little bit more gigabytes. I still think that the technology is fairly new, and therefore not yet perfected. I still believe that the best form of back-ups is not with cloud computing, but the old fashion way with tape drives and storing them offsite.

  3. Cloud computing is still such a new technology and with anything new, it will take time to get accustomed to it. I liked this article because it brought a thought to the surface that is still on everyone’s mind. Will cloud work? Time will tell!

  4. Very nice article and summary. I can see how cloud computing services will slowly become a useful tool for companies, be it a small start company or a large corporate. And the drop in price will only attract companies that have not tried cloud to give it a try, and those that already are using the cloud computing to expand it’s usage of it. But i think all these companies should not sole rely on cloud, they should also have a back up plan if the cloud fails.

  5. Out with the old, in with the new. When these companies with legacy systems eventually convert to cloud services, this will create more jobs for the future generation of workers (Thats us!)

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