Google has thrown down the gauntlet and is competing directly against Amazon and Microsoft with a web hosting solution for both individuals and businesses. What was available only to select few, Google has now opened its Compute Engine server platform for everyone.
On Tuesday Google will announce pricing, features and performance guarantees aimed at companies ranging from start-ups to multinationals.
This is billions of dollars in business competing amongst these technology titans to control corporate and government computing through public clouds. The battle, which is expected to last years and cost the competitors billions of dollars annually in material and talent, already includes Microsoft, Amazon and IBM with a recent super cloud entry.
You no longer need capital investment in owning a computer, server and storage. The tech companies with an entrepreneurial idea will be able to get big fast because they won’t have to build their own computer networks. This creates new business ideas to be in the market at warp speed.
Working with Google has allowed Snapchat to avoid spending a lot to support its users. “I’ve never owned a computer server,” said Bobby Murphy, a co-founder and the chief technical officer of Snapchat.
The two-year old Snapchat, a photo swapping service online, recently rejected an offer from Facebook and manages with only 30 employees. The company started out working with a Google service that helps young companies create applications and was selected by Google to be an early customer of its cloud.
Amazon was the pioneer of cloud service, hosting Netflix as an early customer in 2008. It stopped building computer centers and is now completely on cloud service from Amazon.
Speaking with the N.Y. Times, Google's director of public cloud services, Greg DeMichillie, notes that the company is ‘giving people the same services we rely on to run Google.’ The search giant is very late to the game with its hosting solution, but will be hoping its brand cachet and competitive pricing can make a dent in its competitors' market share.
‘People make a mistake thinking this is just a version of the computers on their desks, at a lower cost,’ said Greg DeMichillie, director of Google’s public cloud platform. ‘This is lots of distributed computing intelligence, not just in computers and phones, but in cars, in thermometers, everywhere. The demand will only increase.’ The heated battle of competitive pricing can make a dent in its competitors' market share.