This price cutting back-and-forth began in early November when AWS announced an 18 percent reduction in the cost of its virtual machines running on its Elastic Cloud Compute (EC2) service. Later in the month, Google announced a 5 percent drop in the price of its pay as you go virtual machine service named Google Compute Engine. Along with that news the company also made a 10-fold increase in the VM instances types available on the platform.
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During the first day of AWS' first user conference, the company announced another price reduction, this time for its Simple Storage Service (S3) service, about a 25 percent drop in its cost. The next day, Google once again lowered its prices for its storage service. Now, a week later, Microsoft is jumping in on the price dropping party too.
Microsoft's drop in its Azure prices bring its standard storage offering -- which includes automatic geo-replication -- to the exact same cost and price structure as AWS's standard storage rates for S3.
Google currently has the lowest starting price for up to 1TB of data, costing $0.085 per GB; AWS and Microsoft each cost $0.095/GB up to the first TB. AWS and Microsoft each offer up to 495TB of data for $0.08/GB, while Google offers 400TB for $0.063/GB.