Cloud computing and “the race to zero”

Cloud computing has completely changed the tech industry, but it’s got a dark side for the companies competing in the market, something those in the industry call “the race to zero.” There’s so much competition in the cloud industry that cloud companies keep cutting their prices, even while they increase their storage limits.

It’s Sunday, so let’s stretch our legs a little bit. Earlier today Julie Bort of Business Insider wrote an interesting piece detailing the rapidly approaching end game of the storage wars: The prices consumers and businesses pay for cloud storage are racing to zero, and that’s forcing new jockeying inside the crowded industry. It’s a trend that’s been underway since Google ripped the cap off the email market by offering a gigabyte of storage in Gmail. Now, cloud providers Box and Dropbox offer their business customers unlimited storage. Microsoft does that as well, extending the offer to its lower-paying consumer subscribers.