JD Cloud joins cloud vendors price war, promises price comparison and 10% discount

According to news on May 29, the cloud service market is ushering in new changes. After Alibaba Cloud announced the largest price reduction in history at the end of April, several other cloud service giants also announced price cuts for core products. Tencent Cloud's price reduction reached a maximum of 40%, Mobile Cloud's entire product line dropped by up to 60%, and Tianyi Cloud even more Advertise on the homepage, claiming that there are products as low as 10% off.

In the past three days, JD Cloud has joined this battle and publicly challenged Alibaba Cloud, Tencent Cloud and Huawei Cloud, promising to provide the lowest price on the entire network. If the purchase price is higher than other cloud vendors, it will be carried out compensation. JD Cloud promises to use the lowest unit price actually transacted by a specific cloud vendor as the basis, and provide a 10% discount on this basis, in addition to participating in the price comparison on the official website price.

The price war launched by major cloud service providers to compete for market share has entered a white-hot stage. The fierce influx of competitors has made the battle increasingly fierce. According to analysis by industry experts, the core goal of the price war is to exchange low prices for more users, especially small and medium-sized enterprise users. The market's demand for innovation and change is urgent.

However, in this price war, the price reduction strategies adopted by some manufacturers are not limited to core products. In advertisements, many manufacturers claim that the price of their products has been reduced by dozens of percentage points, giving people a sense of benefit. However, the pricing of cloud computing products is affected by many factors. In addition to external conditions such as region of use and period of use, the rules, parameters and configuration of the product itself may also lead to significant fluctuations in transaction prices.

In addition, some manufacturers use marginal products as publicity points, obviously using some promotional strategies. Although Alibaba Cloud's price reduction activities are mainly targeted at deep cold archive storage products, this product has received relatively less attention and usage compared to other products. A technical person in charge pointed out that if we only consider the scale of price reduction, we may miss the opportunity to purchase cost-effective products. Products with high price reductions and loud publicity are often not what companies just need.

According to the editor’s understanding, the growth of China’s public cloud market in the past two years has not been optimistic. According to the latest data from IDC, China's public cloud market will grow by 19% year-on-year in the second half of 2022, a decline from the 42.9% growth rate in the same period last year.

Despite the slowdown in growth, competition among cloud service vendors is becoming increasingly fierce. In order to maintain their position in the industry competition, manufacturers are competing to win customers through various channels.

However, in this price war, many manufacturers mainly cut prices on the official website. There is often a big discrepancy between the discounts indicated on official posters and the actual purchase price, just like buying a car.

However, JD Cloud proposed the concept of price comparison and revealed the unspoken rules in the field of cloud computing. Their commitment is to provide a lower actual transaction unit price based on the official website price. As long as customers provide orders, bills and other materials for corresponding products and configurations in the past three months for verification, they can receive corresponding discounts or coupon subsidies. This means that price reductions are dynamic and customers have the right to judge.

In general, the current price war between cloud vendors will ultimately benefit small and medium-sized enterprises. However, we still need to "shop around" because there is a strong binding relationship between cloud services and suppliers, and the migration cost is high. Once a decision is made, it is difficult to change because of the high costs in time and refactoring. We must accept that, as someone in the industry said, even if renewal fees increase

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