Google's cloud busi­ness nabs Home De­pot as client

The Pak Banker - - COMPANIES/BOSS -

SAN FRAN­CISCO:

Google Inc ( GOOG.O), long an also-ran in cloud ser­vices, has scored an im­por­tant vic­tory in its ef­fort to win cor­po­rate clients: Home De­pot is mov­ing some of its data to Google's cloud. The deal, flagged Tues­day by Google ex­ec­u­tive Greg DeMichillie in a briefing and ex­pected to be an­nounced for­mally on Wed­nes­day, high­lights the mo­men­tum Google Cloud Plat­form has gained un­der the lead­er­ship of Diane Greene, a co­founder of VMWare who joined Google late last year.

VMWare sells its "vir­tu­al­iza­tion" tech­nol­ogy for im­prov­ing the ef­fi­ciency of data cen­ters to many of the same cus­tomers that Google Cloud is tar­get­ing. Many of Google Cloud's more prom­i­nent cus­tomers, in­clud­ing mes­sage ser­vice Snapchat, are new In­ter­net-based com­pa­nies - not al­ways the best ref­er­ences for chief in­forma- tion of­fi­cers at more tra­di­tional com­pa­nies.

Land­ing Home De­pot, the At­lanta-based con­struc­tion and home­im­prove­ment re­tailer with over 2,000 stores in the U.S., Canada, and Mex­ico, bol­sters Google Cloud's stand­ing among bricks and mor­tar busi­nesses. Home De­pot de­clined to pro­vide any de­tails on its deal with Google.

Google's cloud busi­ness gen­er­ated about $500 mil­lion in rev­enues last year, ac­cord­ing to an­a­lysts at Gold­man Sachs. That com­pares to $74.5 bil­lion over­all for par­ent com­pany Al­pha­bet Inc (GOOGL.O), but the cloud busi­ness is one of its fastest­grow­ing busi­ness ar­eas.

Over­all, Google is the No.4 player in cloud in­fra­struc­ture ser­vices, ac­cord­ing to Syn­ergy Re­search, with 4 per­cent mar­ket share last year. Ama­zon's AWS took 31 per­cent of the mar­ket, Mi­crosoft's Azure 9 per­cent, and IBM (IBM.N), 7 per­cent.

But there are signs Google is gain­ing ground. Ap­ple, long a user of Ama­zon's AWS and Mi­crosoft's Azure, has started us­ing Google's cloud for its iCloud, the ser­vice that al­lows Ap­ple cus­tomers to store mu­sic, pho­tos, and doc­u­ments, ac­cord­ing to an in­dus­try ex­ec­u­tive.

And last month, mu­sic ser­vice Spo­tify, a high-pro­file cus­tomer of Ama­zon's AWS, said it would use Google's cloud for some com­put­ing in­fra­struc­ture.

Google is also build­ing up its data cen­ters across the world, launch­ing two new re­gional cen­ters in Ja­pan and Ore­gon to bring the num­ber of re­gions it serves to five.

Google kicks off its cloud con­fer­ence in San Fran­cisco Wed­nes­day with a key­note speech by Greene, who is ex­pected to out­line her cloud strat­egy in her first ma­jor ap­pear­ance since join­ing the com­pany.

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