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Google takes on Amazon by cutting cloud service prices

A man stands in front of a Google logo before a talk titled "Connecting with the World Empowering Young Entrepreneurs for the New Digital Ag
A man stands in front of a Google logo before a talk titled "Connecting with the World Empowering Young Entrepreneurs for the New Digital Ag

SAN FRANCISCO (Reuters) - Google Inc will lower prices on cloud services as the search giant gears up to take on Amazon.com Inc, International Business Machines Corp and Microsoft Corp in the fast-growing market of Internet services for corporations.

In a Monday blogpost, Google outlined key features and pricing for "Compute Engine," part of a broader service that vies with Amazon's AWS in providing storage and computing power to corporate clients as in-house datacenters are gradually phased out.

It will lower prices 10 percent on most standard services, and 60 percent on high-end data storage. Google said the service was now "generally available," signaling that it meets internal standards and is ready for a wider rollout.

It is "embarking on a significant multi-billion infrastructure-as-a-service opportunity," analyst Colin Sebastian of R.W. Baird wrote. "Google is positioned to become the next large player in cloud services, with a robust platform of application, platform and infrastructure services, competing for an increasing share of the IT spending pie."

(Reporting by Edwin Chan; Editing by Richard Chang)

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