Earlier in the week Amazon slashed its storage prices on S3. In response, Google -- which just upgraded its cloud services -- slashed its storage prices not once, but twice, reducing the overall costs by 30% in one week.

Ultimately, the business consumer is the winner in this case, but it remains to be seen which offering is cheaper -- and what you get for those prices -- but let’s look at what happened over the week, and where consumers currently stand

Google vs. Amazon

Earlier in the week, Google announced that it was cutting the price of its standard Google Storage by just over 20%. Not to be outdone, Amazon added two more instance types -- a new analytics tool, and an announcement that it was cutting its S3 cloud storage prices by 25%.

But no, that's not all. Google -- maybe in a fit, or maybe not -- responded quickly and cut their price by another 10%, bringing its grand price slashing total to 30% as opposed to Amazon’s 25%.

Google Pricing

Announcing the second price reduction in a blog post, Dave Barth, Product Manager for Google Cloud said that the cut in cloud prices would be across the board.

…today we are reducing the price of Google Cloud Storage by an additional 10%, resulting in a total price reduction of over 30%. This price reduction applies to all Cloud Storage regions and the new DRA Storage,” he said.

The result -- pricing for Google Storage products now looks like this:

Google Storage Pricing.jpg

Google Cloud Storage Pricing

Amazon S3 Pricing

By the looks of things, this makes Google cheaper than Amazon -- even if it doesn't have something to compete with Glacier's monthly storage restrictions and guarantees around reduced availability. Amazon S3 pricing now looks like this:

Amozon S3 Pricing.jpg

Amazon S3 Pricing

In both cases, there were also considerable upgrades to the storage offering. We looked at Amazon S3 earlier in the week, but Amazon was not the only one to upgrade.

Google Storage Upgrades

In a separate blog post, Google also made a number of enhancements.

Leaving aside the prices, Google also introduced Object Versioning -- which keeps versions of your data if you overwrite or delete data by mistake or through an application error.

It also announced 36 additional instance types -- as well as Persistent Disk Snapshotting -- which makes it simple to instantly create a backup of your disk, move it around Google data-centers and use the snapshot to start up a new VM.

Finally, it extended its European support so that users of Google App Engine, Google Cloud Storage, Google Cloud SQL and, soon, Google Compute Engine can deploy their applications, data and virtual machines to European Datacenters.

It’s a good way to close the week -- and the year for that matter -- except perhaps for the number crunchers in both Amazon and Google who will have to sit down again and figure out ways to make storage even cheaper -- as it is certain that the last salvo has yet to be fired in this battle.