Google Cuts Prices for Storage Services - Analyst Blog

Recently, tech giant Google Inc. GOOG announced a price cut for its Drive storage services.

Google slashed infrastructure-as-a-service cloud storage prices from $4.99 per user, per month for 100GB storage to a mere $1.99. 1TB storage, which previously cost $49.99, is now available for $9.99 per month. 10 TB storage will now be priced at $99.99 a month.

This news follows Google's recent investments in Auction.com and Credit karma as well as the launch of the Google Apps referral program, which enables users to earn $15 for new signups based on their recommendation.

Google Drive, launched in 2012, is a data storage and synchronization service which enables users to create, share, edit, collaborate and access files from all devices. The service was updated last year to make it easier for users to view attachments and save documents to Drive directly from Gmail.

With the latest move, Google wants to take on startups like Box and Dropbox as well as bigger competitors like Microsoft Corp. MSFT and Amazon.com Inc. AMZN. Dropbox charges $9.99 for 100GB a month, per user whereas Box‘s services are offered at $5 per user, per month for 100GB. On the other hand, Amazon Web Services' S3 service costs $8.50 for 100GB storage per month and Microsoft's Windows Azure charges $6.80 for 100GB per user, per month.

It is unusual for a big company like Google to slash prices but we believe that the move will enhance its competitive position in cloud computing going forward. Furthermore, on Mar 25, the giant search engine will organize an important cloud event in San Francisco where it will discuss the launch of new products and services.

Recently, in the process of expanding its foothold in diversified markets, Google acquired Green Throttle Games, which adds fuel to the rumor that the search giant is set to venture into the living room with a set–top box to compete against Amazon and Apple Inc. AAPL.

Google currently holds a Zacks Rank #3 (Hold).