Google vs. Amazon Cloud Storage Price War: MSPs Take Note
Anybody else notice the escalating Google vs. Amazon Cloud Storage Price War? For channel partners that build services atop Google Cloud Storage or Amazon Simple Storage Service, the price war is fantastic: Google (NASDAQ: GOOG) cut prices twice this week — before and after an Amazon (NASDAQ: AMZN) price cut. Chances are news about the cloud storage price cuts will go mainstream, and MSPs better be ready to justify their BDR (backup and disaster recovery) prices over the long haul.
A large number of MSPs already use BDR and cloud storage solutions that are purpose-built for channel partners. The solutions include recurring revenue partner programs, and frequently allow MSPs and VARs to manage end-customer billing. In stark contrast, the Google Cloud Storage and Amazon S3 services tend to attract partners that build services atop those massive public clouds — which can take some work, money and sweat equity. Right Scale, for instance, has introduced a backup and DR platform that allows customers to move data across and between multiple public clouds.
Amazon Cloud: 24 Price Cuts (And Counting)
Generally speaking I think most SMB customers will continue to depend on MSPs and VARs for cloud storage advice. But consider this: Amazon Web Services has delivered 24 price cuts since launching in 2006. And increasingly, those price cuts are attracting businesses onto Amazon's public cloud.
Now Google is trying to steal mind share and market share with its own cloud storage price cuts. And it's a safe bet HP Cloud will jump into the battle during HP Discover (Dec. 4-6, Frankfurt, Germany). And don't forget Dell Cloud initiatives, which will receive an update during Dell World (Dec. 11-13, Austin, Texas).
All all cases — Amazon, Dell, HP, Google — vendors want partners to launch storage services in their public clouds. Many MSPs have already chosen specialized, purpose-built BDR solutions that are fine-tuned for SMB customers.
That said, MSPs better to ready to explain their choices to customers because businesses on Main Street USA will surely notice the escalating cloud storage price wars.