As we noted yesterday, Google upped the game in the ongoing battle for dominance in the productivity suite space by offering new add-ons as well as cash to users who switch to Google Drive. Now Google is slashing the price of storage on Google Drive. 

A Big Price Drop

And slash really is the word. According a post on the official Google blog, prices have been cut from $4.99 per month to $1.99 per month for 100 gigabytes, with one terabyte falling from $49.99 to $9.99. 

Google Storage Pricing.jpg

On top of that, Google Drive is offering 15GB of storage free and the 10 terabyte storage plan now starts at $99.99 a month. Compare this to the 15GB free that Microsoft offers as an incentive to open a OneDrive account and the mere 25GB that you get when you open a home subscription package.

With Google, storage continues to work across Drive, Gmail and Google Plus Photos. And, of course, the 15GB plan remains free.Google explains the move as follows:

Today, thanks to a number of recent infrastructure improvements, we’re able to make it more affordable for you to keep everything safe and easy to reach on any device, from anywhere."

Productivity, Storage

However, this is just the most recent salvo in the competition for the cloud computing market, it also ties into the battle for dominance in the productivity suite pace as all the the products offer a certain amount of storage with all their plans.

In the storage space, Google has been competing directly with the likes of Dropbox and Amazon, but  in the productivity space it competes principally with Microsoft.

Also in the storage space, Dropbox, which claims to have more than 200 million users, offers 2GBs storage for free, which is not a lot compared to even Microsoft OneDrive. But Dropbox also offers 100GB for $9.99 a month or $99 per year. It also offers unlimited storage for at least five users at a price of $15 user per month for every user.

The price of storage has been an ongoing issue with Amazon, Google and Microsoft and over the past year the three have been undercutting each other as they look to cut the biggest market share in the storage place with other players like Dropbox and Box adding spice to an already very competitive market.

However, in light of the announcements over the week where Google upped the pressure on Microsoft by offering a whole pile of new functionality with Google Drive, the addition of new and drastically reduced storage prices for Google Drive will add a whole new element to the picture.

In all then, Google is now offering Google Drive with extended functionality, a cash incentive to those that can persuade friends and colleagues to move, and now storage space at a basement price of about 80 percent less than it was previously.

It may be, as some have suggested, that storage will cost nothing at some point down the road. But for the moment companies that can offer it cheaper than competitors will have business edge and at the moment Google prices look pretty cheap.

However, it’s unlikely that the other players in the market won’t respond so watch out for further price cuts in the coming week. Ultimately, like the competition in the productivity space, it’s the users that will win out.