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It is a proof of that Google API is overpriced. Google apparently sells something, that can be computed as well.

izacus 7y ago
Everyone of us software developers sells something that can be computed or made as well. For insane prices no less.
remus 7y ago
That's a pretty cynical interpretation. To me it seems more like they took an easy engineering approach when the cost per API call was low, then when the price went up they re-designed their software to use API calls more frugally by using some domain specific knowledge (that google couldn't know about so wouldn't be able to build in to their pricing).
cookie_monsta 7y ago
If the quality of every dataset was equal this argument might be more compelling but we know it's not so this rings a little untrue. Besides, I suspect that Google knows exactly what their data is worth and keep a very close eye on the price/demand model. Just because something is subjectively expensive doesn't make it objectively overpriced.
prepend 7y ago
I wonder how Google prices this api? The actual cost must be difficult to determine because if the source data. Perhaps they have some margin formula for “buying” data from their internal sources. It seems to me that they are value pricing and since they are close to a monopoly on this service they are testing the price elasticity.
- filoleg 7y ago
  The data for traffic is usually needed in real time, not just dumping historical data in one call and sitting on it. With that in mind, the most obvious pricing policy seems to be to either charge per API call or to have subscription tiers where you have a cap on maximum number of API calls per hour or per day or whatever other time interval they choose.
  - prepend 7y ago
    Sorry, I meant the price it sets for the api calls. The article calls out $10/1000 so the current price is a penny per call. I’m interested in how they set that rate.

Everyone of us software developers sells something that can be computed or made as well. For insane prices no less.

That's a pretty cynical interpretation. To me it seems more like they took an easy engineering approach when the cost per API call was low, then when the price went up they re-designed their software to use API calls more frugally by using some domain specific knowledge (that google couldn't know about so wouldn't be able to build in to their pricing).

cookie_monsta 7y ago

If the quality of every dataset was equal this argument might be more compelling but we know it's not so this rings a little untrue. Besides, I suspect that Google knows exactly what their data is worth and keep a very close eye on the price/demand model. Just because something is subjectively expensive doesn't make it objectively overpriced.

prepend 7y ago

I wonder how Google prices this api? The actual cost must be difficult to determine because if the source data. Perhaps they have some margin formula for “buying” data from their internal sources. It seems to me that they are value pricing and since they are close to a monopoly on this service they are testing the price elasticity.

filoleg 7y ago
The data for traffic is usually needed in real time, not just dumping historical data in one call and sitting on it. With that in mind, the most obvious pricing policy seems to be to either charge per API call or to have subscription tiers where you have a cap on maximum number of API calls per hour or per day or whatever other time interval they choose.
- prepend 7y ago
  Sorry, I meant the price it sets for the api calls. The article calls out $10/1000 so the current price is a penny per call. I’m interested in how they set that rate.