What the escalating war among cloud computing rivals means for you

 

Connecting state and local government leaders

A price war is under way among Amazon, Google and IBM in the market for cloud services that makes running your own data center nearly impossible to justify.

This week, IBM took out several ads trumpeting its cloud market share. Following quickly on the heels of IBM’s announcement, Google announced the “general  availability” of the Google Compute Engine, a direct competitor to Amazon Web Services’ Elastic Compute Cloud. 

Along with the upgrade of its service from beta to general availability, Google also announced three new features of its infrastructure-as-a-service offering: lower price, greater Linux support and the Docker “container-as-a-service”  platform. What’s going on? Let’s examine each of these developments and then consider the ramifications. 

Google dropped its prices by 10 percent for the most popular IaaS compute instances and 60 percent for disk storage. Price competition for IaaS services is continuing to heat up, with many sites calling it a “cloud price war.” In fact, 12 hours after Google’s announcement, AWS announced a 26 percent drop in prices for its Windows virtual machines. 

The second leg of Google’s cloud platform announcements introduced increased Linux support for any “out-of-the-box Linux distribution” to include SELinux, CoreOS, SUSE, FreeBSD and Red Hat Enterprise Linux. At the same time it should be noted that Linux Virtual Machines are cheaper and therefore more popular in the cloud than Microsoft virtual machines. 

One interesting and possibly unique feature of the Google Cloud Platform (at least amongst its main IaaS rivals) is support for the Docker container-as-a-service platform. Linux containers are a form of “operating system virtualization” or an application container that enables each application to have its own environment as if it were the only application running on the system (its own file system, memory space, system libraries, etc.).  

These containers are more efficient than machine virtualization, so IT managers can run many more simultaneous containers than they can run virtual machines. Additionally, containers spin up instantly unlike the boot time of operating systems that take minutes. 

Thus, containers are a real threat to IaaS vendors that only support virtual machines. Docker is an open-source project that is making containers easier to use, more secure and more portable. Though only a small footnote in Google’s announcement, Docker support could prove more valuable than all the other announcements.

Now let’s briefly shift back to IBM and its battle to gain traction in the IaaS cloud space. In this month’s Fortune magazine, IBM took out three full-page ads to announce: “IBM Cloud hosts 30 percent more top websites than anyone in the world” and “Whose cloud powers 270,000 more websites than Amazon?” and “IBM Cloud supports 24 of the top 25 Fortune 500 companies.” These lofty claims seem more like cherry-picking the facts given the common knowledge that Amazon leads the IaaS/PaaS markets by a wide margin. 

For the customer, this hyper-competition is a good thing. The price war is part of the drive toward cloud computing as a commodity with prices impossible to ignore. We are approaching price points that make running your own data center sound as foolish as running your own electric power plant. 

So, I say, keep up the fierce competition!

Michael C. Daconta (mdaconta@incadencecorp.com) is the Vice President of Advanced Technology at InCadence Strategic Solutions and the former Metadata Program Manager for the Homeland Security Department. His new book is entitled, The Great Cloud Migration: Your Roadmap to Cloud Computing, Big Data and Linked Data.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.