The hottest Tencent cloud announced that the price

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Tencent cloud announced that the price of its core cloud products fell further

recently, Tencent cloud announced that the price of its core products, such as cloud servers, cloud databases, cloud disk drives, etc., would be adjusted, with a 53% drop in cloud servers. Recently, large and small cloud computing enterprises, including Amazon, Alibaba cloud and Microsoft, have successively started large-scale price reduction actions, so that the seemingly tall cloud computing has not been popularized, but has fallen into the inertia cycle of price war

with the continuous improvement of cloud services of major IT giants, the cloud computing market has entered an era of separation. In fact, the price war in the public cloud market is now very fierce. This new round of price war was first launched by Google, and then Amazon announced that it would reduce the price of most cloud computing services by 10% to 65% from April 1. Microsoft also joined the price reduction team on May 1, reducing the price of its cloud computing services by 27% to 35%. During the installation of cloud storage, the concrete base should be laid in advance, and the storage price should be reduced by 44% to 65%

however, in the metallurgical industry, domestic cloud service providers have also made price adjustments. On March 25, Alibaba cloud lowered the price of ECS servers. Among the 11 ECS servers with reduced prices, the maximum decrease was 30%, while the price reduction of cloud storage announced on March 28 was even more eye-catching. The g-1 gear, which users use more, was reduced by 42%, almost half that of domestic peers; The database service was reduced by 15% again. The price adjustment just announced by Tencent cloud also reduced by as much as 50%. In addition, Tianyi cloud of Chinatelecom (also from May 5, a comprehensive price adjustment will be made to its virtual machine products, and the price reduction of some specifications of virtual machines will exceed 40%. Insiders believe that for other domestic cloud computing enterprises, the price war means a more brutal industrial environment. If this round of price reduction of Tencent cloud triggers a price war, the cloud service market will quickly become a low profit, operation and service market. Alibaba cloud Chen Jinpei, general manager of cloud services, predicts that the price of cloud services will be reduced by at least 30% - 40% every year. Every 18 months, the performance will double or the price will be reduced by half. The price every three years is 1//3 of the current price

on the other hand, the declining price of cloud services has also brought great pressure to traditional computing equipment manufacturers. According to Wall Street, several cloud computing service companies have reduced prices, which is changing the way business executives do things. These executives spend $140billion a year on computers, Internet lines, software and other equipment for enterprise technology centers. The price war will determine how companies use the computing that is responsible for running their businesses. At the same time, "C" represents China and poses a threat to traditional computing center equipment manufacturers such as IBM, HP and EMC. For those companies that think they will have their own computing centers one day, the above price war is delaying their time to realize this wish

it is not difficult to explain why among the global server manufacturers in the fourth quarter of 2013, only HP and Cisco achieved growth in that quarter. IBM declined by 28.9%. This also forces traditional equipment manufacturers to strive to transform into cloud service providers. For example, IBM has invested about $1.2 billion to expand global cloud infrastructure in order to shift its business focus to cloud computing services, and recently announced a further investment of $1billion. Cisco also plans to start providing cloud computing services to enterprise customers, promising to invest $1 billion in zero heat generation in the next two years

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