Google will take smaller cut from revenues on cloud marketplace

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Alphabet’s Google announced it will take a smaller cut when customers buy from other vendors on the search giant’s cloud marketplace. Google Cloud Platform is cutting its percentage revenue share to 3% from 20%.

The goal, according to a Google Cloud spokesperson in a statement is to provide Google’s partners with the best platform and most competitive incentives in the industry.

In the works

Earlier this year, Google decided to cut its service fee for developers in its Play Store by half on the first $1 million they earn in revenue in a year. In an announcement made seven months ago, Google announced the move to give developers discounts, following a move by its rival Apple for the app store. It cut its fees to 15% from 30%, which went into effect on July 1.

Competition

As we await the new price slashes, Google seems to be in the middle of a transformation that will see it be more competitive. Amazon Web Services and Azure dominate the cloud market in different ways. Google Cloud is trying to take a bigger bite of that share with this price reduction. However, there are regulatory, operational, social, and political challenges the company faces in its push for global domination.

Even when the move was made to halve fees for developers, Epic Games echoed the sentiments of many other developers who felt that the system was unfair since it forced them to use the in-app payment service, something that Apple does too.