Google is changing its pricing, commitment plans and term options for Workspace and Google Cloud services in a move to offer more cost flexibility and choice for customers. However, some of these changes include an increase in costs, such as to Google Workspace’s Flexible Plan subscriptions for Business Starter, Business Standard and Business Plus editions.

“We’re announcing a few updates to our pricing to reflect the value in our products, alongside expanded commitment options to lock in the lowest pricing, providing our customers with more choice,” said Steve Holt, vice president of strategy for Google Workspace, in a blog post today.

Google Workspace is the company’s suite of collaboration and productivity apps that include tools like Gmail, Meet, Docs and Calendar, to name a few.

The Mountain View, Calif.-based company is also changing up-front commitments needed from Google Cloud customers.

Google Cloud executives say some organizations find it challenging to predict what cloud resources they’ll need in months or years ahead.

“To help, we’re developing new ways for customers to consume and pay for Google Cloud services. We’re doing this by removing barriers to entry, aligning cost to consumption and rewarding longer-term commitments,” said Google Cloud’s Kelly Ducourty, vice president, go-to-market Strategy and Operations; and Joe Matz, vice president of Business Planning and Pricing, blog post today.

Google Cloud is the world’s No. 3 market share leader in cloud services, according to new cloud market data from IT research firm Synergy Research Group. Google Cloud won 11 percent share of the global cloud market in fourth quarter 2022, trailing Microsoft at 23 percent share and Amazon Web Services at 33 percent share.

However, Google Cloud grew cloud sales at a higher rate in fourth quarter 2022 compared to Microsoft and AWS by generating sales of $7.3 billion during the quarter, representing a growth rate of 32 percent year over year. Google Cloud is looking to continue this type of customer growth by launching new pricing tiers for its cloud services as well as Google Workspace.

Here are the five big changes around pricing, spending commitment as well as completely new options for Google Workspace and Google Cloud solutions that all Google partners need to know about.

Source: https://www.crn.com/news/cloud/google-workspace-cloud-services-price-changes-5-big-shifts