Google slashes its Drive storage prices, undercutting Dropbox and other rivals

- March 14, 2014 2 MIN READ

Cloud storage just got super cheap. Search engine supremo Google has slashed its online Drive storage prices in what we suspect is a strategic move to undercut its rivals – including Dropbox, Sugarsync and Box.

The dramatic price cut for Google Drive was announced yesterday by Google’s Director of Product Management, Scott Johnston. Storing 100GB of data in Google’s systems has fallen from US$4.99 to $1.99 per month. One terabyte now costs $9.99 a month where previously it was $49.99; and 10TB costs $99.99 per month, down from $399.99.

It wouldn’t be a surprise to see reprisals from competitors Dropbox which charges $9.99 for 100GB per month and Box which charges $5 for the same space.

Additionally, the maximum size for files not converted to the Google Docs format is also now 25GB, and users of Gmail, Google Drive and Google+ Photos can continue to use up to 15GB free.

“Having launched Google Drive just two years ago, we’re excited that so many people are now using it as their go-to place for keeping all their files,” Johnson wrote in a blog post.

“Whether it’s all the footage of your kids’ baseball games, the novel you’re working on, or even just your grocery list for the week, we all have files that are too important to lose. Today, thanks to a number of recent infrastructure improvements, we’re able to make it more affordable for you to keep everything safe and easy to reach on any device, from anywhere.”

Interestingly, the Google Drive price reduction undercuts the $6.30 Google charges for storing 100GB in its mainstream infrastructure-as-a-service Google Cloud Storage. But rumours are also spreading through the Internet that Google will drastically reduce the prices of its main cloud storage services within the next month or so.

Yesterday’s price slashing announcement comes before the search giant introduces a number of new products and services at a major cloud event in San Francisco on March 25th.

At the event, Urs Hölzle, Senior Vice President for Technical Infrastructure, and the senior engineering leadership of Google Cloud Platform will be announcing new features for Google Cloud Platform (that will help developers with “big data”) and will be sharing the company’s “vision for the future of cloud computing.”

Overall, it’s refreshing to see such a major vendor outdoing its competitors by offering the lowest prices, rather than increasing them year upon year.