Google Cloud pre­pares for Black Fri­day ‘peak on top of peak’

Cape Breton Post - - BUSINESS - PARESH DAVE

Al­pha­bet Inc's Google Cloud unit is poised for a surge in fourth-quar­ter sales from U.S. re­tail­ers, as they brace for record on­line shop­ping dur­ing the hol­i­days be­cause of COVID-19 lock­downs.

Cloud tech­nol­ogy, used to host web­sites and store data, is a key part of many re­tail­ers' ecom­merce oper­a­tions. As fees are of­ten pegged to site traf­fic, a jump in ac­tiv­ity will drive up rev­enue for the unit.

Car­rie Tharp, vice pres­i­dent of re­tail and con­sumer at Google Cloud, told Reuters that her team had this year tossed out its lin­ear growth model to pre­dict how many servers it will need to process web or­ders for re­tail­ers around Black Fri­day.

“We're plan­ning for peak on top of peak,” she said. That could be a boon for Google Cloud, which has gen­er­ated about 30 per cent of its rev­enue dur­ing the fourth quar­ter the last two years.

Stores such as Kohls Corp and Way­fair Inc lean on Google months in ad­vance to en­sure it has enough servers to with­stand in­creased shop­ping dur­ing hol­i­day dis­count days such as Black Fri­day and Cy­ber Mon­day in Novem­ber and De­cem­ber.

This year, Black Fri­day-style de­mand has flooded shops since March, when the United States be­gan lock­downs, Tharp said.

Hol­i­day shop­ping is ex­pected to boost de­mand fur­ther, as re­tail­ers in­clud­ing Tar­get Corp and Wal­mart Inc have said they will re­duce in­store hours be­cause of coron­avirus con­cerns.

Tharp said the pan­demic has al­ready ben­e­fit­ted Google Cloud, with some re­tail­ers adopt­ing its pre­dic­tive al­go­rithms years ahead of plan to help them work out the most ef­fi­cient way of ful­fill­ing or­ders.

REUTERS

A Google Cloud logo out­side of the Google Cloud com­put­ing unit’s head­quar­ters at the Mof­fett Place of­fice com­plex in Sun­ny­vale, Calif.

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