RAX,GOOG: Rackspace tumbles, Amazon and others lower following Google cloud launch

Rackspace tumbles, Amazon and others lower following Google cloud launch • 11:10 AM

• Rackspace (RAX -5.9%) is once more falling (previous) due to a product announcement from a cloud infrastructure (IaaS) rival, only this time the culprit is Google (GOOG +0.5%) rather than Amazon (AMZN -1.8%). The search giant has taken its Compute Engine IaaS platform out of beta, and has cut computing and persistent storage prices by 10% and 60%, respectively.
• Amazon is also lower, as are Red Hat (RHT -1.3%) and data center owner Equinix (EQIX -0.9%). Like Racksapce, Red Hat is a major supporter of the OpenStack IaaS platform.
• In addition to cutting prices, Google has greatly expanded Compute Engine's feature set. The company has added support for more Linux variants (inc. Red Hat and rival distributions) and popular app deployment tool Docker, and is launching a 16-core computing instance and high-I/O storage instances for intense workloads.
• Amazon, which just unveiled several new cloud services, still has a big edge on Google in terms of scale, feature set, and developer support. But consulting firm Scalr declares Google to be ahead of Amazon in terms of performance and reliability. They're considered even on pricing.
• Moreover Google's IT and engineering resources, together with its expertise in creating cheap, high-performance, data center hardware, should make it a solid rival in time, at least for basic computing/storage services.
• Previous: Amazon dominates cloud infrastructure

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