The company is also adding in automatic discounts for the sustained use of services. Using a GCE constantly for a month could reduce the bill by as much as 53 percent, DeMichillie said.
DeMichillie vowed that Google will continue to aggressively cut prices to reflect declining hardware costs in the industry. Overall, hardware costs can decrease by 20 to 30 percent annually, as each generation of processors, memory and storage come with greater capacities.
While Amazon Web Services and Microsoft have routinely cut the prices of their services, DeMichillie argued that the cloud services industry as a whole does not keep pace with the falling hardware prices. Cloud services prices, on the whole, fall only eight percent per year, he said.
The company also unveiled a number of new services as well.
It has launched a new type of virtual machine (VM), called the managed virtual machine which allows a user to move an application built on Google App Engine (GAE) into a full IaaS (infrastructure as a service) VM.
PaaS has some limitations in that if a user needs a programming language or a database or some other tool that isn't offered in the PaaS environment then "you are stuck," DeMichillie said. The new offering allows the user to migrate a Google PaaS into a virtual machine, which provides an environment to add the additional required tools.
"You get the flexibility of a VM environment, but also the auto-management capability of GAE," DeMichillie said. "The software that you previously had running on an app engine back end will now run on a virtual machine with other software."
Also, the company has opened BigQuery data analysis service to be able to accept live data streams as well. It can ingest up to 100,000 rows of data per second.
For the IaaS space, the company has introduced a number of new operating systems it can offer, namely Red Hat Enterprise Linux, Suse Linux and Microsoft Windows 2008 R2.
The company has also launched a cloud DNS (domain name service) for enterprises that wish to outsource that function. For developers, it has integrated the GitHub online code repository to its own consoles.
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