As COVID-19 imposes pressure on cloud providers to cut prices, Oracle is vying for a foothold in the market by DavidJeans2
Cloud computing services are largely unseen by the public. But chances are any big business you use today, from your bank to Netflix, your favorite sports league to your favorite soft drink maker, spend millions of dollars — even billions over the course of some contracts — to maintain their networks, process customer interactions and store data remotely.
Oracle’s recent gains with Zoom and 8x8 point to an area of the cloud in which it eyes a foothold: acting as a last mile delivery service of sorts in the cloud, an area known as “data egress.” The service, which helps customers download data from a central cloud platform, can prove costly for businesses, especially providers of data-hungry video-conferencing tools.
That new reality could usher back a pricing race to the bottom that shifted the landscape — and benefited customers’ balance sheets — in 2014 when Google sought to make its own cloud splash. Then, Google’s price cuts topped 85% for some services, forcing AWS and Microsoft to institute their own discounts. Now, it appears at least Amazon is doing so again. Amazon won’t publicly say what determines price reductions and says it has instituted more than 80 since 2006.
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