Onion of the Day – Rackspace (RAX)
-Google announces massive new cloud price cuts from a 32% price cut across the board, a 68% price cut on storage, and a 85% price cut on queries Link
Why is it bad news for Rackspace?
-Large price cuts by cloud competitors significantly pressure Rackspace cloud business margins
-New York Times: “Prices would continue to fall roughly in line with Moore’s Law, Mr. Hölzle said” Link
This quote above means Google intends to keep pricing very low going forward