Why Google Cloud offers tiered Network pricing

On August 23, Google announced tiered pricing for its networking service. As part of the announcement, Google will now offer a “standard” network tier in addition to its current network tier, now re-branded as “Premium” tier.

Now, when you read the tiered pricing launch announcement, the primary message will be that they now enable their platform users to run a mixed workload wherein users have a choice to pay for the Premium tier and deliver traffic over Google’s highly reliable, global network to get low-latency, high-throughput experience.

However, my takeaway is that this announcement is more about branding and messaging exercise to woo enterprises than to go after such cost-conscious segment. I anticipate the following key benefits with this announcement:

  • Helps create a perception among the customer’s minds that their “Premium” network tier is something unique and highly differentiated compared to other competitor’s offerings. This message wasn’t obvious to a lot of users.
  • Brings out the message that they are the only vendor among the top 3 cloud vendors to offer a premium networking tier.
  • Highlights that they are cost efficient compared to the other top 3 cloud vendors while offering comparable performance.

Hit me up if you think Google will succeed in bringing out these messages!

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