Each time Google Apps faces off against Microsoft Office 365 for a big customer deployment, Google shifts the cloud conversation to price, according to several Microsoft channel partners. Instead of battling on Google's terms, it's time for Microsoft to more aggressively promote the value of Office 365, those channel partners say.

Price wars are nothing new in the cloud computing and cloud services market. The showdown occurs in the SaaS wars (Office 365 vs. Google Apps) and in the IaaS and PaaS wars (Microsoft Windows Azure vs. Amazon Web Services and soon, Google Compute Engine).