Google is going after the competition in the online storage arena with an array of price cuts. Coming on the heels of the Microsoft Office 365 price cut, Google announced that storage prices for Google Drive would be slashed drastically. In a blog post, the company credited recent infrastructure improvements as the chief reason for the price cuts. Or, Google decided to brush aside competition in the online storage business.

Right now users get a free 15GB storage account on Google Drive. The next tier, 100GB has been reduced from $4.99 per month to $1.99. The terabyte option saw substantial price cut, from $49.99 to $9.99. If you, for whatever reason, need 10 terabytes of cloud storage – Google has that tier priced at $99.99 per month.

Google’s promotion of the terabyte tier takes a humorous bent. The company describes it as “enough storage for you to take a selfie twice a day for the next 200 years and still have room left over for… shall we say… less important things”.

Drive’s productivity suite, the old Google Docs, released a store for third-party add-ons. Most users have probably notice the feature if they work exclusively inside the productivity suite. The move is designed to target Office users as well as open source software such as Openoffice.

Where does this leave Dropbox? It is currently the most popular option for cloud storage. More than likely they will respond with more storage, and most users are not likely to move away from something they already have set up. Google will have to make the add-ons compelling to start poaching customers.

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If Google does see a spate of higher sign ups, it’s good for the quarterly earnings calls. The more people inside the ecosystem, the better for Adwords. That’s where the majority of the company’s revenue comes from, so it makes sense for them to cut cloud storage prices to entice users over.

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