Google cloud chief 'dead serious' about competing in public cloud

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Google cloud chief 'dead serious' about competing in public cloud

Diane Greene, the VMware co-founder who's now leading Google's cloud business, said the search giant is ready to make its mark in a public cloud market where it's trailing Amazon Web Services and Microsoft Azure by a wide margin.

"We are dead serious about this business," Greene said in press conference at last week Google's GCP Next conference in San Francisco. "We've spent billions on data centres and are going to use them as much as we can. This is a long-term, forever event."

Google has been in the public cloud space for several years now, with modest results so far. Google has around 4 percent of the market compared with 31 percent for cloud services kingpin Amazon Web Services, 9 percent for Microsoft and 7 percent for IBM SoftLayer, according to Synergy Research.

Google may be playing catch-up in the cloud platform services market, but it has an edge in areas like machine learning, open-source software and security, Greene said in the press conference.

Greene said Google also offers better pricing and performance than the competition. "We have extraordinarily efficient data centre systems and these operations let us offer lower prices."

Morgan Stanley recently estimated that Google's cloud infrastructure business generated around US$500 million in revenue during 2015, while AWS said in January that its business was on a US$9.6 billion annualised run rate. Microsoft doesn't break out Azure revenue.

Google lags when it comes to attracting large enterprise customers to its cloud, and Greene – who sold to large companies during her time at VMware – has been brought in to get the ball rolling. To further reinforce Google's commitment to cloud, Alphabet chairman Eric Schmidt and Google CEO Sundar Pichai also took the stage to talk up the progress being made on this front.

At the conference, Google revealed that Home Depot, Disney and Coca-Cola are now Google Cloud Platform customers. Google also said BMC, Pivotal, Red Hat, SAP, Splunk, Tenable Network Security, Veritas and several other enterprise software vendors are working to integrate their offerings with Google Cloud Platform.

The big enterprise customer wins come on the heels of a blockbuster Google deal to provide Google Cloud Platform services to Apple, which was first reported by CRN USA last week.

Since inking the Google deal late last year, Apple has also significantly reduced its reliance on Amazon Web Services, whose infrastructure it uses to run parts of iCloud and other services, according to CRN USA's sources. 

Earlier this week, Google announced that it is building new data centres in Oregon and Tokyo, both of which will begin operations later this year. Google said it's also planning to open an additional 10 data centre facilities by the end of 2017.

This article originally appeared at

Copyright © 2017 The Channel Company, LLC. All rights reserved.

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