Today's announcement is the first significant expansion of Google's IaaS product, with the newest instance types including high-memory, high CPU and diskless configurations.
Instance types of Google Compute Engine (GCE) now range from the smallest single virtual core with 3.75GB of memory and 420GB of local disk price for $0.138 per hour in the U.S., to an eight virtual core instance that includes 30GB of memory and up to 2x 1770GB of local disk space, or a diskless option rising to a cost of $1.104 per hour. Google also dropped the price of its original four instance types by 5%.
In addition to the new GCE instance types, the company announced a price reduction of 20% for Google Storage. Object storage in Google's cloud is now $0.095 per GB up to 1TB, then $0.085 per GB up to 9TB, and the price continues to fall as additional storage is placed in the cloud. Ingress of data is free, but egress starts at $0.12 per GB for 1TB.
By comparison, Amazon Web Service's compute instance types start at $0.065 per hour for a 1.7GB memory and 160GB instant storage Linux-based single-core virtual machine, and range up to a high input/output 16 virtual core instance type with two SSD-backed 1024GB instant storage and 60.5GB of memory for $3.10 per hour.
The timing of Google's price reduction announcement comes two days before Amazon is set to hold its first-ever user conference named AWS re: Invent in Las Vegas.