Thursday , August 18 2022

The head of the new Google clouds has a great task to capture warriors, a Reuters data show


SAN FRANCISCO: Google has head of new cloud computers and great ambitions for some more revenue generation from that business than advertising.

Now there's a difficult part: win over big spending customers.

Alphabet Inc.'s cloud computer department continues to be a third far behind Inc. and Microsoft Corp in terms of global revenue, according to analyst estimates. A few large companies control their data on Google servers. But Google has no place close to Amazon's vast customer base, according to a new Reuters analysis of company regulatory files.

In general, businesses are not required to disclose their cloud sellers. Reuters found 311 out of around 5,000 worldwide that did so in 2018. Although it is not comprehensive, the data gives a window to the Google challenge.

Thirty-five of those companies are from the Google name as a cloud provider. The largest market capitalization was the main oil of the Total SA and the HSBC Holdings Plc bank.

Graphics: Amazon cloud dominant –

Amazon Web Services led to 227 clients, including the Expedia Group Inc. travel company and the industrial industries of Siemens AG. The Azure Microsoft company had 69 companies, including Axon Enterprise Inc.'s weapons maker and business data company Dun & Bradstreet Co.

Thirty-four companies identified a number of clouds.

The previously brought data shows the work forward to Thomas Kurian, who is weeks on the post as the chief executive of Google Cloud. Kurian has promised to double where Google has seen promising results. In particular, it intends to target best governments and companies in retail, manufacturing, healthcare, the media and finance.

"A lot of focus as we move on ensures that our organization sells the background and its ability to sell to larger, more traditional companies," said Kurian at Goldman Sachs's investors conference last week. "There are huge appetite in those companies to consider Google."

Google refused to comment or make Kurian available for interview.

Graphics: Why are company vendors disclosed –

People who are familiar with plans said he was looking to reconstruct the culture of his division. A key part is to develop or procure easy-to-use, corporate-specific corporate applications, an area that does not dominate Amazon and Microsoft.

"It's about the ramp on their cloud," said Daniel Ives, a New York-based financial analyst following the cloud industry for Wedbush Securities. "The main way to get that is through applications."

A veteran of Oracle Corp., 22 years, Kurian gave a fresh life to the database company as the product leader behind her to move to sell cloud services. His hiring already means that potential customers are reconsidering Google, said Ray Wang, founder of Constellation Research, Monta Vista company, Calif. which helps businesses to deal with clouds.

"They've worked with him," said Wang. "There is a trust factor that was not there" ".

Kurian also needs to ensure that some investors are motivated by the ambitions of Google clouds: Changing revenue beyond advertising is beneficial, but it does not become cheap.

Google, Microsoft and Amazon combined almost $ 53 billion on capital costs last year, driven by data center projects to accommodate their clouds.

With gross margins of 20 per cent or less, the sale of cloud stories or equipment for which specialist customers need is less profitable for a small seller, industry experts said. But there are margins on the type of software that Kurian is likely to offer even reaching even 60 percent of Google's business.

"The next wave of growth will come from the heavy hit applications," said Kerry Liu, chief executive of Rubikloud, who helps retailers with cloud projects.

& # 39; GEEKY, TECHY PLATFORM & # 39;

Google was serious about the cloud around 2016, five years after Amazon Amazon Websites became a multimillion-dollar behemoth. But Google's reputation for support for limited customers has attracted newer businesses or those with significant technology knowledge.

Mike Fisher, chief technology officer Etsy Inc., said that Google's advanced AI tools have helped to win over the new craft market in New York. Fisher expects roaming algorithms to account for 25 per cent of a server using it this year, up from 10 per cent last year.

"We've been surprised more than we do," said Fisher for the benefits of the cloud.

The OpenX advertising software company recently agreed to spend at least US $ 110 million on Google Cloud over five years. Betad was the company of Pasadena, Calif., That its clients would benefit from discussing the same infrastructure as the Google ad system.

"There's a bit more geeky platform, techy, but it's that kind of company," said Chief Technology Officer, Paul Ryan.

Graphics: Battle for large cap customers –


In order to attract more traditional corporate clients, Google Cloud will need to do some holdings, executive officers in its partners and tell the competitors.

Kurian is fit for the role. Two of his colleagues said that his subsequent and candidative disclosures about product restrictions help deal with a seal in Oracle. Early in early, Kurian impressed the staff with detailed preparation for morning meetings as well as remembering the most details about client systems of years ago.

Kurian also managed billions of dollars in acquisitions in Oracle, including the purchase of BEA Systems and Taleo software companies.

Applications could come through similar and internal agreements: Google is testing product recommendation software for shopping apps, says a person who is familiar with the project

add to its small set of specialized equipment.

Kurian told the investors conference that "you will see us continue to expand our footprint there."

(The story corrects the title of the post in the eighth paragraph)

(Report by Paresh Dave; Additional reports by Arjun Panchadar in Bengaluru; Editing by Greg Mitchell and Marla Dickerson)

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