Moore’s Law was on our side, I thought, even if it seemed to happen more slowly in the cloud than with PC computing in the 90s. After all, when we started Picturelife we set our pricing with acceptance that Amazon’s costs were high and would only go down slowly. In part, it was our acceptance of this that was leading our business model to succeed where Everpix’s did not.
But this week changed everything.
On Tuesday Google announced dramatically lower prices at their Cloud Platform event in San Francisco, making us consider moving our tech platform for the first time — something unthinkable until their price cuts.
A day later, Amazon came out with their own announcement, signaling 35% to 65% price cuts for their S3 Standard pricing, putting them nearly in line with Google’s dramatic move the day before.
Shots had fired and two cloud giants were now at war.
Whereas Amazon once enjoyed sole positioning in the cloud computing ecosystem, the speed at which Amazon dropped their prices was telling: Google’s storage and compute platform was now good enough that a major price slash could encourage us to jump ship. And it was. The day of the Google announcement, my CTO and I and fantasized about leaving AWS.
Dropbox is in this situation as well. AWS is great when you are starting up your business as you can move quickly. As you continue to grow, your costs with S3 continue to grow. I suspect this is why Dropbox hasn't been able to match Google Drive's pricing. The Cook Doctrine is proven right again.
Link via @dharrisphotog.