Google looks to close the cloud gap with Amazon and Microsoft through new acquisition
Internet giant Google has announced that it is acquiring small cloud migration company Alooma. The goal behind the purchase is simple: to accelerate Google’s cloud business over the coming months, letting it compete with the big boys of the industry (Amazon and Microsoft, who are the number one and number two players, respectively). What does Alooma do? The short version is this: it helps companies migrate their data from multiple sources into a single data warehouse.
Alphabet’s share price has appreciated by 6% so far this year
Source: Yahoo Finance
At a conference earlier this month, Google’s new cloud chief, Thomas Kurian, made a promise to listeners: “You will see us accelerate the growth even faster than we have to date.” That’s a big promise, and one that investors will be pleased to hear: Google is a natural fit for the cloud space, but has stalled in number three position after Amazon and Microsoft. While still a major player, it’s failing to reap the huge growth rewards that the industry offers – and those rewards could eventually become another string on Google’s bow, alongside its core business of digital advertising.
Google didn’t disclose the sum it paid for Alooma, but analysts expect it to be relatively small. However, given its business model, the Israeli start-up could end up being a powerful strategic play, creating a sales funnel for Google’s cloud service and, ultimately, the rest of its powerful enterprise ecosystem.
In a blog post announcing the acquisition, Google said: “Here at Google Cloud, we're committed to helping enterprise customers easily and securely migrate their data to our platform. The addition of Alooma, subject to closing conditions, is a natural fit that allows us to offer customers a streamlined, automated migration experience to Google Cloud, and give them access to our full range of database services, from managed open source database offerings to solutions like Cloud Spanner and Cloud Bigtable. This simplified migration path also opens the door for customers to take advantage of all the technologies we have to offer, including analytics, security, AI and machine learning.”
Dominion holds Alphabet, the parent company of Google, in its Global Trends Managed Fund.
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