These are pretty huge price drops. Google just became very competitive with Amazon on cloud services. Hardware prices have been plummeting, but cloud service prices have been slow to come down.
Even without the sustained use discounts, Google’s pricing now undercuts that of its competitors for on-demand pricing and is often lower than Amazon’s EC2 prices for reserved instances, too.
So far, Google, Amazon and Microsoft have always matched one another’s cloud-hosting prices, and chances are, we will see price drops from Google’s competitors in the coming weeks, too. Amazon, of course, is hosting its own cloud-centric event later this week and we will likely hear more from them about pricing, too.
Always good to have competition.