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Onion of the Day – Rackspace (RAX)

News
-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

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h/t @Colin_Sebastian


Categories: Orchid/Onion