Recently Google slashed price for their cloud offering . Amazon, as expected, also announced their 42nd price reduction on their cloud offerings since its inception. Today, Microsoft also announced price reduction for their Azure offerings . Unlike many other people I don't necessarily see the price reduction by Amazon as waging a price war against the competition. Infrastructure as true commodity: IaaS is a very well understood category and Amazon, as a vendor, has strong desires to move up in the value chain. This can only happen if storage and computing become true commodity and customers value vendors based on what they can do on top of this commodity storage and computing. They become means to an end and not an end itself. Amazon is introducing many PaaS like services on top of EC2. For example, RedShift is the fastest growing service on EC2. These services create stickiness for customers to come back and try out and perhaps buy other services. These services also create a b