Monday, February 22, 2016

Google's Custom Compute Engine will change the Cloud

            Google has rolled out its newest addition to its cloud based service called Custom Based Machine types.  It lets its customers rent virtual server capacity on tech titans' massive, hyper-efficient data centers (Business Insider).  Originally you buy cloud space in one size fits all type blocks, and this either leaves you with paying for double space when you don’t need that much, or paying for a single amount and missing out on a significant amount of storage data.  Google’s server allows you to select what you specifically want.  “By letting you select exactly the virtual server configurations that customers need, it cuts down on waste, and therefore, needless expenditure (Business Insider)”. 

This breakthrough in cloud technology and service is what businesses need.  It allows for the company to hand pick what it needs.  This saves time and saves money, because it does not have to waste extra money on storage it does not need.  According to one of Google’s many customers Wix, a custom website builder, saved 18% in compute costs, while Lytics saved between 20% and 50%, in its early testing of the Custom Machine Type (TechCrunch).  The average savings of all the companies included in the beta was around 19% (Information Week).  This will allow for businesses to worry less about how much cloud storage they have and worry more about their customers, and other financial problems within the company.  

            The article goes into detail about how it is risky to use this type of service, because of a loss of revenue, but with this technology it will open opportunities for smaller businesses to invest in companies like Wix because of lower pricing from Google.  This will also allow for larger corporations to invest in large amounts of cloud space without breaking the bank.  

1 comment:

  1. This is a very interesting approach by Google. Certainly, Google is risking millions of dollars by implementing this customizable option for storage and processing. However, as the article briefly mentions, the "cloud war" going on between companies such as Google, Amazon, and Microsoft is immensely competitive. By offering this option, Google is attempting to attract a very large number of new customers in order to offset the loss of revenue which is to the benefit of their customers. If Google fails to attract these new customers, their revenue stream will take a big hit. However, with the cloud storage market being as competitive as it is, I believe Google will soon see the influx of customers it's hoping for.


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