Google Cloud Platform Live: Blending IaaS and PaaS, Moore’s Law for the cloud

MAR 25, 2014
Author PhotoBy Urs Hölzle, Senior Vice President

Editors 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%:
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: 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.


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.

Posted by Louis Gray, Googler