Recent Price Cuts in Cloud Computing Services{5}

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