In recent weeks Amazon, Google, and Microsoft have all announced another round of reductions in pricing for various facets of their Cloud offerings. In fact, Amazon touted their announcement as their 42nd price reduction. Some pundits and media have highlighted the collective announcements as similar to “price wars” that sometimes occur in sales of retail products. And, some analysts have projected that additional Cloud providers will soon roll out price reductions to remain competitive. In this Strategic Perspective, we look at the underlying implications of price reductions, and we offer projections of how the Cloud market is beginning to change.
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