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Oct 3 2014, 8.20am GMT


Google is going head to head with Amazon in the cloud computing price war: Following Google’s announcement that they will cut costs of their cloud service, Google Compute Engine, eyes now fix on Amazon to do the same.

The cost cutting exercise performed by Google saw 10 per cent slashed off the cost of its cloud computing taking the battle to rivals Microsoft Azure and Amazon Web Services to perform equivalent cuts.

The tech giant Google has done before and this was seen to have a negative impact on the estimated growth forecasts for Amazon’s 2014 third quarter, where it was predicted that they would suffer operating losses of $400 million to $800 million.

Also in the constant war to win market share on the World Wide Web, Yahoo are pushing the benefits of their all-star cast of digitized magazines featuring amongst others, movies, food and celebrities, to appeal to advertisers. The history of the war for digital advertising market spend goes back many years but in the most recent episodes the major faces of the internet are employing tactics based on content to achieve their goals. Google improved platforms for advertising such as YouTube premium channels and AOL bought Adap.TV for $405 million in 2013. These acquisitions and developments were based on the need to engage viewers with enhanced content, attract advertisers to the increased viewer rates and thereby gain a bigger slice of the advertising revenue pie. The digital advertising market is currently worth $140 billion.

Following recent reports on Yahoo being urged to merge with AOL, the Sunnyvale, California company is loading its own weapon in the ‘content’ wars - digitized magazines of premium standard to attract the high end spender who provide better revenue per ad. The focus of Yahoo to become a media company has been evident for over two years, and now there is speculation abroad that Yahoo may benefit from buying a leading U.S newspaper, reinforcing its plans and reputation in the field of content marketing.

Yahoo (YAHOO), Google Inc (GOOGLE), Amazon (AMAZON) and AOL (AOL) shares are traded through CFDs on STOCK.com

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