A number of infrastructure improvements at Google have allowed the company to slash the price of its cloud storage service, Google Drive, with paid packages starting at $1.99 for 100 GB.
Previously, the first paid tier of monthly cloud storage went for $4.99 per month for 100GB. What is more significant to Thursday’s announcement, however, is the lowered price of its 1TB cloud storage offering. Now, 1TB of Google Drive storage is $9.99, down from $49.99 per month. The 15GB plan remains free.
The race to the bottom for pricing of cloud services has been ongoing, with Amazon, Microsoft, and Google all joining in. In December, Google Compute Engine saw a number of updates along with its general availability, including a price up to 60 percent lower per GB.
While the Google blog post announcing the price change didn’t go into the specific infrastructure updates, it is possible the infrastructure has improved, at least in part, to help eliminate downtime. Earlier this year, Gmail suffered an international outage that lasted up to 50 minutes for some users. Drive is the cloud storage application connected to Gmail.
Are these price cuts a threat to cloud or hosting providers that offer cloud storage as a value-added service? Not necessarily. There is still some concern associated with Google around security and privacy, particularly after news last year about the NSA tapping into Google and Yahoo data centers. Google was “outraged” and responded by encrypting links between its data center.