Amazon and Google Cut Cloud Computing Prices

By Evan Niu, CFA – Apr 5, 2013 at 12:19PM

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The e-tail and search giants have each respectively reduced pricing in their cloud computing service offerings.

E-tail giant Amazon.com (AMZN -1.14%) has now announced that it is reducing prices on cloud computing services in its Amazon Web Services division. Instances of Microsoft Windows running on its Elastic Cloud Compute, or EC2, service will receive the price cuts of up to 26% as Amazon continues to reduce costs and pass those savings on to customers.

Amazon has a long history of reducing AWS pricing. In its last earnings release, the company noted that AWS has lowered prices 24 times since launching in 2006, with 10 price reductions in 2012 alone.

At the same time, rival Google (GOOGL 0.35%) similarly said it would lower prices for its Google Compute Engine, nine months after launching the service. Google is dropping prices by 4% across all Compute Engine pricing. Additionally, the search giant has expanded availability and added new features.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends and owns shares Amazon.com and Google. It also owns shares of Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.