The price war in the cloud storage space heats up
A few days ago at the I/O developer event, Google (GOOGL) announced that it will provide companies with unlimited storage space for $10 per user per month. Google’s storage space had been limited to 30GB. This will be a new service from Google. The service will be called Google Drive for Work. Microsoft (MSFT) also announced a few days ago that it would more than double OneDrive’s free storage space, from 7GB to 15GB, for consumers.
During the WWDC event in early June, Apple (AAPL) also announced big price cuts to its iCloud storage service. Recently, Amazon (AMZN) launched its Fire smartphone. Amazon plans to leverage its competence in the cloud services market through an unlimited photo storage feature on its smartphone. The cloud storage market has grown rapidly. We’re seeing price wars in the cloud storage market intensify.
Google Drive for Work offers attractive features
Google’s new Drive for Work pricing plan for unlimited storage would certainly help Google attract more enterprises. Most cloud storage companies still provide limited storage space. Drive for Work will also benefit ETFs like the iShares Dow Jones US Technology ETF (IYW) and First Trust Dow Jones Internet Index (FDN), which have high exposure to Google. According to a report from Computerworld and as the graph above shows, the prices for limited cloud storage space range from $0.10 to $1.20 per GB per year. But it will be hard to directly compare prices. Each player offers a different set of features for its cloud storage service.
For example, Google’s Drive for Work service will help companies monitor what documents employees reading, deleting, or sharing. The service will also help encrypt documents for security. Then we have cloud storage start-ups like DropBox and Box. They’ve started to provide more insight to enterprises on how employees are working through storage-related data.