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Not really about the point you were making, but...

Google seems to be aiming this at enterprise customers looking for essentially a private cloud SAN. Their fees otherwise seem quite high.

Lets compare pricing:

  Google: .17/G storage .10/G in .15/G out US/EU .30/G asia
  AWS <10TB : .14/G storage .10/G in .15/G out US/EU .20/G out asia
  AWS =100TB: .14/G storage .10/G in .07/G out US/EU .11/G out asia
  Loss leading CDN: as low as .10/G storage - .01/G in - .01/G out US only (new customers only)
  Biggest video CDN =250TB: ??/G storage - .10/G in - .10/G out US ??/G out asia
  Managed DFW colo =2TB: 250G storage free - .21/G in - .21/G out worldwide
  Carrier hotel rack 100mb/s 1yr: ~.10/G storage ~.06/G in ~.06/G out worldwide - ~.02/G out citywide
Obviously services offered vary - but the only player google is beating on price is rackspace with their entry level commit, but the colo also gets you ~4ECU's, dynamic content and 24hr phone NOC.

Google competes with AWS at the low end but once you scale amazon wins by 50%-66% or more. Akamai beats google by 33% with a sizable commit but that gets you on net at ~1000 edges and a great SLA. Google won't even tell you where your content is - except that it's US only.

I think this is only being marketed at applications like b2b sales force hosting, data heavy scientific apps and enterprise offsite backups. You'd get killed trying to use them for a consumer service. I mean $0.30/GB to .au AND high latency?

The irony is that google's real operating costs are probably the lowest out of any of the players at least for US delivery. Their backbone enjoys tremendous scale based on their search & ad traffic and everyone peers with them.




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