As someone responsible for pricing decisions at my company, it has been very interesting reading through this thread and processing the reactions.
First, I will say that - I feel for users that are reading this blog and trying to process the changes. I completely understand the reaction of those to whom at a glance it may appear that compute bills would go up by 2x as a result of this pricing change. I am sure that is shocking, especially to companies on short budgets. The change is effective on July 5 2023, which is really not that far away. If you have a mature data warehousing deployment, it could take may way longer than 3 months to plan and execute a migration.
However, speaking from experience, it is challenging to come up up with a perfect usage-based pricing model for infrastructure heavy product like BigQuery that suits everyone’s needs, and even harder to communicate it well.
Some of the reasons are…
* There is tension between keeping the pricing simple and yet have it be fair to every workload. If you really want a fair pricing model, you will need to add more and more pricing dimensions to make users pay more granularly for each resource that makes up the infrastructure cost. But a pricing model with 10-20 dimensions is really hard to understand, even if the final price tag would have been lower for each workload, than a more “simple looking” model.
* Deciding on pricing changes of an existing offering is also not easy. I am going to guess the reason for this pricing change wasn’t because Google decided to “nickle and dime” their users (could be of course, but I would hope that is not how most companies think). I would guess it was the autoscaling feature that was the catalyst for the change. Why did the compute price point have to change? Probably because current users are over-provisioning by quite a bit and the current price point is lower to reflect that, so the end price tag is still within reasonable budget and market expectations. If the autoscaling feature is going to work as perfectly as their charts in the blog show, the price point must come up to make up for the margin loss. As some point out, in that scenario, bursty compute workloads that are reserving too much capacity may actually come out ahead.
* Once you do one pricing change, you may as well bundle in other important pricing changes that have “piled up” on the product team backlog. I am guessing that is how the storage change came up - users were confused about paying for uncompressed storage, while some alternatives charged on compressed, and so they made the change. Changing pricing from one dimension to another is tricky. As some pointed out, storage price point went up, but the dimension moved from uncompressed to compressed storage, so the effective price change for most users may actually be lowered, if the compression rate make up for the price point increase.
Anyway, very interesting, I am really curious to see how this change plays out in the market in the coming months.