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Thursday, April 26, 2012

Google shows that Moore's Law can go backwards

I used to pay $5/year for 20GB of additional Google storage. With the launch of Google Drive, however, Google has changed the prices on storage, and it's dramatically higher. It's now $2.50/month for 25GB, or $30/year, 6 times more expensive.

Fortunately, as long as you keep renewing your current Google plan, your price will remain at $5/year. I don't know whether the old plans allocates storage for Google Drive (there's no easy way to find out), but be very careful if you wish to upgrade your storage plans for Google Drive.

Or use Skydrive instead. At $10/year for 20GB, it's a much better deal. Plus, it comes with more free storage.

I don't know what caused Google to try to pull this stunt, but I guess online storage is immune to Moore's law. (I could discuss the technical reasons for this, but they have to do with Google's internal infrastructure and nothing to do with what you should pay for online storage)


Daniel Keys Moran said...

Quite plausibly it has something to do with the spike in hard drive prices after the Thailand flooding -- once changes like that rattle their way through all the infrastructure, you can end up with strikingly higher prices in specific spots, with no evil intent.

Or they're gouging. But I'd at least consider the former.

Rajat Jain said...

Can you discuss the reasons in a separate blog, maybe (regarding Google's infrastructure)? Would love to know!

Piaw Na said...

Rajat: Storage has always been Google's achille's heel. I'm unfortunately covered by NDA so I cannot discuss more in a public forum.

Daniel: Actually, the pricing is most likely driven by competition with Dropbox. Google reasonably believes that being cheaper than Dropbox by 75% will basically kill Dropbox. I actually don't think that Google is at nearly close to feature parity with Dropbox, so I disagree. I expect Dropbox to continue to do well.

Piaw Na said...

One more point for Daniel: Hard drive prices soared, by maybe 50%. I don't think that translates to a 600% price increase for reasonable human beings. The reasons are internal to Google, not due to an external supply shock which would go away by next year anyway.