Posted by Urs Hölzle, Senior Vice President, Technical Infrastructure

(Cross-posted on the Google Cloud Platform blog)

Today at Atmosphere Live, I spoke about how Google is helping developers realize the promise of cloud computing by providing on-demand access to world-class technology at an affordable price.

We believe that compute — the core of any cloud workload — should be simple and fast to provision, scale without effort, and be priced in accordance with Moore’s Law. In March of this year we set a new standard for economics in the public cloud when we brought the price of core infrastructure, including compute & storage, in line with where it should be.

And, as predicted by Moore’s Law, we can now lower prices again. Effective immediately, we are cutting prices of Google Compute Engine by approximately 10% for all instance types in every region. These cuts are a result of increased efficiency in our data centers as well as falling hardware costs, allowing us to pass on lower prices to our customers.

Old and new prices for all our Compute Engine instance types

Using Compute Engine doesn’t just lower costs; it makes developers more productive, agile and efficient. Many development teams spend about 80% of time on what we call “fix and fiddle,” such as managing systems, fixing bugs and just keeping the lights on. Only 20% of time is spent how it should be — building new products or systems that will be platforms for growth.

With Compute Engine and the rest of Cloud Platform, it doesn’t have to be this way. A small company like Snapchat can reach a global audience with just a few people on their development and operations team. Workiva, which processes financial reports for 60% of the Fortune 500, can focus on solving the needs of their users rather than managing infrastructure. And, this past World Cup, Coca Cola and Cloud Platform partner CI&T built and ran the Happiness Flag campaign in just a few weeks with the help of Google Compute Engine. The campaign solicited over three million contributions from fans in more than 200 countries.

We've made a lot of progress in the past year and look forward to what's coming next. Tune in to Google Cloud Platform Live on November 4th to learn more about where we’re headed.

Posted by Urs Hölzle, Senior Vice President

(Cross-posted on the Google Cloud Platform Blog)

Editor's note: Tune in to Google Cloud Platform Live for more information about our announcements. And join us during our 27-city Google Cloud Platform Roadshow which kicks off in Paris on April 7.

Today, at Google Cloud Platform Live we’re introducing the next set of improvements to Cloud Platform: lower and simpler pricing, cloud-based DevOps tooling, Managed Virtual Machines (VM) for App Engine, real-time Big Data analytics with Google BigQuery, and more.

Industry-leading, simplified pricing
The original promise of cloud computing was simple: virtualize hardware, pay only for what you use, with no upfront capital expenditures and lower prices than on-premise solutions. But pricing hasn’t followed Moore's Law: over the past five years, hardware costs improved by 20-30% annually but public cloud prices fell at just 8% per year.

We think cloud pricing should track Moore’s Law, so we’re simplifying and reducing prices for our various on-demand, pay-as-you-go services by 30-85%:

• Compute Engine reduced by 32% across all sizes, regions, and classes.
• App Engine pricing simplified, with significant reductions in database operations and front-end compute instances.
• Cloud Storage is now priced at a consistent 2.6 cents per GB. That’s roughly 68% less for most customers.
• Google BigQuery on-demand prices reduced by 85%.

Sustained-Use discounts
In addition to lower on-demand prices, you’ll save even more money with Sustained-Use Discounts for steady-state workloads. Discounts start automatically when you use a VM for over 25% of the month. When you use a VM for an entire month, you save an additional 30% over the new on-demand prices, for a total reduction of 53% over our original prices.

Sustained-Use Discounts automatically reward users who run VMs for over 25% of any calendar month 

With our new pricing and sustained use discounts, you get the best performance at the lowest price in the industry. No upfront payments, no lock-in, and no need to predict future use.

Making developers more productive in the cloud
We’re also introducing features that make development more productive:

• Build, test, and release in the cloud, with minimal setup or changes to your workflow. Simply commit a change with git and we’ll run a clean build and all unit tests.
• Aggregated logs across all your instances, with filtering and search tools.
• Detailed stack traces for bugs, with one-click access to the exact version of the code that caused the issue. You can even make small code changes right in the browser.

We’re working on even more features to ensure that our platform is the most productive place for developers. Stay tuned.

Introducing Managed Virtual Machines
You shouldn't have to choose between the flexibility of VMs and the auto-management and scaling provided by App Engine. Managed VMs let you run any binary inside a VM and turn it into a part of your App Engine app with just a few lines of code. App Engine will automatically manage these VMs for you.

Expanded Compute Engine operating system support
We now support Windows Server 2008 R2 on Compute Engine in limited preview and Red Hat Enterprise Linux and SUSE Linux Enterprise Server are now available to everyone.

Real-Time Big Data
BigQuery lets you run interactive SQL queries against datasets of any size in seconds using a fully managed service, with no setup and no configuration. Starting today, with BigQuery Streaming, you can ingest 100,000 records per second per table with near-instant updates, so you can analyze massive data streams in real time. Yet, BigQuery is very affordable: on-demand queries now only cost $5 per TB and 5 GB/sec reserved query capacity starts at $20,000/month, 75% lower than other providers.

Conclusion
This is an exciting time to be a developer and build apps for a global audience. Today we’ve focused a lot on productivity, making it easier to build and test in the cloud, using the tools you’re already familiar with. Managed VMs give you the freedom to combine flexible VMs with the auto-management of App Engine. BigQuery allows big data analysis to just work, at any scale.

And on top of all of that, we’re making it more affordable than it’s ever been before, reintroducing Moore’s Law to the cloud: the cost of virtualized hardware should fall in line with the cost of the underlying real hardware. And you automatically get discounts for sustained use with no long-term contracts, no lock-in, and no upfront costs, so you get the best price and the best performance without needing a PhD in Finance.

We’ve made a lot of progress this first quarter and you’ll hear even more at Google I/O in June.