Google (NASDAQ:GOOGL) offered the latest proof when it cut prices 4% on Cloud Engine, a low-cost hosting alternative to Amazon Web Services. EMC and VMware (NYSE:VMW) have also joined the effort with a spinoff called Pivotal, which is due to be formally unveiled before month-end, according to trade magazine eWEEK.
Even Microsoft (NASDAQ:MSFT) wants in, having recently cut prices for some on-demand services available through its competing Windows Azure platform. All signs point to a race to the bottom, which is good news for the likes of Netflix, which consumes vast amounts of Internet infrastructure for delivering its services. Amazon may not be so lucky, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.
What do you think of Google's power play? Please watch to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Amazon stock at current prices.
Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google, Netflix, and Rackspace Hosting at the time of publication, and he also had long January 2014 $50 Calls on Netflix. Check out Tim's Web home and portfolio holdings, or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
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