Begun, the cloud war has.

We have been talking about cloud computing for a few years now on this blog, but in terms of market maturity it is still early days. We are really entering the equivalent of the second inning of a much longer game, it will be over for a long time, and things are just now getting really interesting. In case you missed it, the AWS Summit began this week in San Francisco, with Amazon announcing several new services and advances. But the headline of the week was Google’s announced price cuts for their cloud services:

Google Compute Engine is seeing a 32 percent reduction in prices across all regions, sizes and classes. App Engine prices are down 30 percent, and the company is also simplifying its price structure. The price of cloud storage is dropping a whopping 68 percent to just $0.026/month per gigabyte and $0.2/month per gigabyte/DRA. At that price, the new pricing is still lower than the original discount available for those who stored more than 4,500TB of data in Google’s cloud.

Shortly thereafter Amazon countered with their own price reductions – something we figured they were prepared to do, but didn’t intend during the event. Amazon has been more focused on methodically delivering new AWS functionality, outpacing all rivals by a wide margin. More importantly Amazon has systematically removed impediments to enterprise adoption around security and compliance. But while we feel Amazon has a clear lead in the market, Google has been rapidly improving. Our own David Mortman pointed out several more interesting aspects of the Google announcement, lost in the pricing war noise:

“The thing isn’t just the lower pricing. It’s the lower pricing with automatic “reserve instances” and the managed VM offering so you can integrate Google Compute Engine (GCE) and Google App Engine. Add in free git repositories for managing the GCE infrastructure and support for doing that via github – we’re seeing some very interesting features to challenge AWS. GOOG is still young at offering this as an external service but talk about giving notice…

Competition is good! This all completely overshadowed Cisco’s plans to pour $1b into an OpenStack-based “Network of Clouds”. None of this is really security news, but doubling down on cloud investments and clearly targeting DevOps teams with new services, make it clear where vendors think this market is headed. But Google’s “Nut Shot” shows that the battle is really heating up.

On to the Summary, where several of us had more than one favorite external post:

Favorite Securosis Posts

Other Securosis Posts

Favorite Outside Posts

Research Reports and Presentations

Top News and Posts

Blog Comment of the Week

This week’s best comment goes to Marco Tietz, in response to Friday Summary: IAM Mosaic Edition.

Thanks Adrian, it looks like you captured the essence of the problem. IAM is very fragmented and getting everything to play together nicely is quite challenging. Heck, just sorting it out corp internal is challenging enough without even going to the Interwebs. This is clearly something we need to get better at, if we are serious about ‘The Cloud’.