Google perceived as needing some big deals to compete against Amazon, Microsoft, and Oracle
Under the new leadership of Thomas Kurian, Google Cloud could be gearing up for a big buying spree to get itself in a better position to compete against the likes of Amazon Web Services and Microsoft Azure.
The Lowdown: Google is a tertiary player in the business cloud computing market. Kurian, who took over for retiring Diane Greene, has a growth-through-acquisition track record. The combination of the two factors is leading many observers to speculate that Kurian, a former Oracle executive, will drive growth through acquisition.
The Details: Market observers see Google needing to acquire major cloud services platforms and applications to stay in the cloud game. Adding more business-class cloud applications, such as Slack and Atlassian (maker of Trello) would put it in a much better competitive position. Others speculate Google snapping up security vendor Splunk or ServiceNow would bolster its enterprise fortunes.
The Impact: If Google buys one or more companies such as Atlassian or ServiceNow, it’ll transform its channel and the channel landscape. Google already works extensively with channel partners in taking its G Suite and cloud computing capabilities to market. Adding enterprise applications would radically transform its channel composition and relationships.
Background: Under Greene, Google made several attempts to grow its cloud business through acquisition. Google approached Red Hat about a development partnership, but was rebuffed. Red Hat was later acquired by IBM for $36 billion. Also, Google was reportedly interested in acquiring development platform provider GitHub before being beaten out by Microsoft.
The Buzz: “Thomas Kurian has probably acquired more companies, for the longest period of time, than almost any executives in the software industry,” Anshu Sharma, the co-founder and chairman of Clearedin, told Business Insider.