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Google takes on Amazon by cutting cloud service prices

Tuesday, 3 Dec 2013 | 4:48 PM ET
A bicyclist rides his bike past a Google Inc. sign at the company's headquarters in Mountain View, Calif.
David Paul Morris | Bloomberg | Getty Images
A bicyclist rides his bike past a Google Inc. sign at the company's headquarters in Mountain View, Calif.

Google will lower prices on cloud services as the search giant gears up to take on Amazon.com, IBM and Microsoft in the fast-growing market of Internet services for corporations.

In a Monday blog post,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 data centers 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 roll-out.

(Read more: Google prepares for the end of the world)

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."

—By Reuters.

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