In a bid to survive in this cut-throat enterprise cloud market, Google has now announced major price cuts across various services available through its cloud platform. The search giants claims to be providing services at 40% cheaper as compared to other players.

Announcing the price cut via a blog post, Google said,

Starting today, we are reducing prices of all Google Compute Engine Instance types as well as introducing a new class of preemptible virtual machines that delivers short-term capacity for a very low, fixed cost

Google new permissible VMs, when combined with its automatic discounts and pre-minute billing will let you do away with penalties for changing machine types, and would also cut off the need to enter into long-term fixed-price commitments.

Continuing on its “Moore’s Law” philosophy of price reduction, Google’s price cut across U.S., Europe and Asia stands as follows :

  • Standard =  20%
  • High Memory = 15%
  • High CPU = 5%
  • Small = 15%
  • Micro =30%


Apart from announcing significant price reductions, Google also introduced a new class of permissible Virtual machines, designed specifically for the needs of applications where workload tends to be flexible. 

These permissible VMs will run your short-duration batch jobs 70% cheaper than regular VMs. Preemptible VMs are identical to regular VMs, except availability is subject to system supply and demand. So why offer enterprise resources at such a bargain ?

Well, Google says that since “it runs Preemptible VMs on resources that would otherwise be idle, it can offer them at substantially reduced costs.” However, this is probably more of a marketing gimmick and even though Google did mention a case study for the same, we’ll still have to wait and watch how these permissible VMs perform.

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