Google takes on Amazon by cutting cloud service prices

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

Google will lower prices on cloud services as the search giant gears up to take on, 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.

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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.