The inflation rate is over the long run insignificant compared to the
doubling of cost-performance each year. In 10 years that means 1000
times
cheaper computing power, storage and communication! So with a fixed
price
Google (and other cloud providers) can within a few years reach
astronomical
profit margins and hope that their customers don't understand
exponential
progress.

Here is some hard data about this:
http://www.kurzweilai.net/the-law-of-accelerating-returns

On 1 Sep, 04:03, John Wheeler <[email protected]> wrote:
> I find it hard to believe you guys actually went though the data and saw the
> 500% jumps on the comparison reports and decided to release the pricing plan
> changes with such gusto. No one who signed up for App Engine ever saw that
> e-mail coming a mile away, and it hurts.
>
> Here's a plain and simple idea that makes sense: Why not just keep the
> pricing the same and announce you're going to charge 2% increases each year
> to match for inflation?

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