Cloud computing is often applauded for the affordability that it can offer to businesses and consumers, although there are also those who contest the cost-effectiveness of cloud deployment, often because this discussion can be had in such broad terms, as to render different arguments completely oppositional, yet equally valid.

However, when looking at the cloud providers that are operating on an industrial scale and servicing some of the largest companies in the world, it is clear that an intense price war has been initiated and continues to rage.

Network World reports that a variety of the world’s biggest cloud companies, including Google and Amazon, have been racing to slash costs for capacity and access.

This healthy competition is obviously good news for cloud customers because it means there is always the incentive for providers to undercut rivals and give you a better deal.

However, it might be problematic from a certain perspective, if just one or two major companies are able to monopolise the market by squeezing out smaller players via unsustainable price reductions.

Because cloud computing has effectively become a utility, prices are being cut on things like the cost of individual virtual machines and even the hourly value of using additional storage capacity or processing power.

This gives companies the opportunity to harness completely flexible and scalable IT platforms and use them for whatever purpose they require, without breaking the bank.

If cloud prices continue to slide, then they will surely level out eventually, although there have been double-digit reductions from big firms in recent months, which suggest that aggressive reductions are still on the cards.

Some companies remain sceptical about the cloud, but eagerness to adopt will increase just as prices of usage are cut. This, more than anything, could shape usage in the future.