Google and Microsoft have adopted a new strategy in which they have made significant investments in other companies to boost their cloud market share and compete more effectively with AWS.
In 2019, when Tomas Kurian took over as
CEOafter Diane Green stepped down, he wasn’t hesitant to spend the company’s $142 billion cash on hand to entice additional consumers to the service. Indeed, Google has made a significant investment in ADT, a provider of enterprise security systems ($450 million). Univision, a Spanish-language media corporation, Tempus Labs, a health tech startup, and CME Group, a futures exchange company ($1 billion).
According to toa new report from the Wall Street Journal, these investments are part of Google Cloud’s larger strategy to attract more customers to its platform, and they have already begun to pay off, with many companies making multiyear commitments to use its cloud services worth as much as $1 billion or more.
However, Google isn’t the only cloud computing company aiming to grow its market share through investment. has acquired several businesses that plan to use its cloud, and Oracle’s anticipated $28.3 billion investment resulted in a significant boost in your own cloud business.
Public cloud providers such as Microsoft, Google, and Oracle use a new tactic to increase their public cloud market share. The Wall Street Journal reports that the organizations invest in potential… https://t.co/SINH11mBRT #Cloud #Azure #GoogleCloud #investment – Follow for more
— Techzine Europe (@techzineeu) December 31, 2021
Google’s new approach of making strategic investments to attract businesses to its cloud appears to be succeeding, as the company now has 6% of the cloud market(up from 1% last year), albeit it still trails Microsoft, which has a 20% share and Amazon which has a 41% market share.
A
representative told the Wall Street Journal that investments and collaborations with other firms are one of the ways the company is seeking to draw new customers to its cloud, even though it has already attracted many based on its capabilities alone.
is following a similar strategy. One of its most significant investments so far has been a stake in GM’s driverless-car firm Cruise, which will utilize Microsoft Azure to launch its autonomous vehicle services. Not to be outdone, Google then invested in Tempus, a firm that employs artificial intelligence to improve medical care.
Despite the fact that both
and
are attempting to gain ground in the cloud wars, previous
outages have demonstrated that more competition in the market benefits businesses, governments, and even consumers.
