Internet giant Google this week announced price cuts for users of its cloud service. Specifically, the price cuts are of graphics-related and super-fast processors.
After a positive year-to-date, Google shares are easing a little on a mixture of developments, news and outlook. Investors are also likely holding their current positions after solid gains.
Google shares closed 0.12% lower at $1,034.66, Monday.
Price cuts to woo developers
Google announced the price cuts, in a blog post Monday.
“Today we’re extending the benefits of GPUs by cutting the price of NVIDIA Tesla GPUs attached to on-demand Google Compute Engine virtual machines by up to 36%,” Google Product Manager, Chris Kleban, wrote in a blog post.
“Scientists, artists and engineers need access to massively parallel computational power. Deep learning, physical simulation and molecular modelling can take hours instead of days on NVIDIA Tesla GPUs,” he added.
In US regions, K80 GPU’s attached to a VM will now cost $0.45 per hour and each P100 is reduced to $1.46 per hour, the post detailed.
The announcement is designed to appeal to developers. The timing of the cuts is also strategic, coming as it does just before the annual Amazon Web Services conference in Las Vegas.
The AWS conference, which will run next week, is expected to include a number of price cuts and new developments.
The impact on Google’s share price
While the news didn’t have a direct impact on Google’s share price, it’s yet another move designed to impress users – existing and new ones. And, any way in which Google can grow its user base, particularly for chargeable services, is beneficial to profits and investors.
However, there are concerns the business could face further regulatory interest. Of course, this won’t be something that likely only affects Google. Other tech and online business are sure to face increased scrutiny too.
But, based on the amount of unwanted interest Google already garners, it could something that has an impact on the stock price, going forward.