Google Inc (NASDAQ:GOOGL) has announced a new low-cost storage service for businesses and individual users in order to compete with Amazon.com, Inc. (NASDAQ:AMZN) Cloud services. The search engine giant is now offering 1GB of Cloud storage space at 2.6 cents. The new service will be a compromise between offline and online Cloud storage. While this will not satisfy the need of the enterprise, the storage service can be a good option for small businesses. But Google Inc (NASDAQ:GOOGL)’s Cloud storage services have already a bundle of options for the users. This latest development is just to garner some publicity, or to give a tough time to Amazon.com, Inc. (NASDAQ:AMZN).
Google Inc (NASDAQ:GOOGL) says that the response times in the new Cloud storage service will be 3 seconds. Users can also ‘buy’ a faster response time of 1 seconds, but this would demand more money.
Amazon.com, Inc. (NASDAQ:AMZN) has also a low-cost storage solution, which was launched after the tape service became outdated. But Amazon.com, Inc. (NASDAQ:AMZN)’s data services take hours to access whereas Google Inc (NASDAQ:GOOGL)’s low-cost data storage service can access data in 3 seconds. Google Inc (NASDAQ:GOOGL) can beat Amazon.com, Inc. (NASDAQ:AMZN) in these low-cost storage services, but they cannot make much difference as they are either used by individuals or small businesses.
An article on Bloomberg said that Amazon.com, Inc. (NASDAQ:AMZN) has more than 30% of the share in data storage services whereas Google Inc (NASDAQ:GOOGL) has only 5% share. If Google Inc (NASDAQ:GOOGL) succeeds in getting customers, it can leverage its Cloud storage platforms and increase business.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
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