Google Inc (NASDAQ:GOOGL) adamant on taking over the cloud services business
Google Inc (NASDAQ:GOOGL) is trying to attract potential customers for its waning cloud platform. Google (NASDAQ:GOOGL) will be holding a cloud developers conference next Tuesday to discuss some strategies regarding its cloud platform. However large and powerful it is still far behind the leader Amazon, while being closer to Microsoft’s Azure. On top of that, Google (NASDAQ:GOOGL) has to look out for new comers like IBM who are rising fast.
The reason for Google (NASDAQ:GOOGL)’s lag is that it adopted a narrow approach, urging developers to use Google (NASDAQ:GOOGL)’s own software, Amazon, on the other hand, followed a liberal approach. Another reason is that Google (NASDAQ:GOOGL) started its cloud platform later than Amazon. Amazon’s share price has waned a bit but that hasn’t helped Google (NASDAQ:GOOGL) at all. Google (NASDAQ:GOOGL) is concerned with high profile consumers such as Netflix and CIA, which are now under Amazon.
Google (NASDAQ:GOOGL) on the other hand has employed tactics such as lowering of costs and adding more features to catch up with the success of Amazon’s cloud service. It roped in the largest internet providers in the world in a bid to oust Amazon and take the helm. Additional price cuts and the addition of new features might strike the customer’s fancy. So far Amazon’s position has looks unshakable.
Google (NASDAQ:GOOGL) gave some respite to the developers last year by giving them virtual machines with a different operating system than Google (NASDAQ:GOOGL)’s own, to compete with Amazon’s product Elastic Cloud compute. The word in the market is that Google (NASDAQ:GOOGL) will allow its developers to power the cloud services according to industry standards. Google (NASDAQ:GOOGL) has been making deals with big companies to persuade them to use Google (NASDAQ:GOOGL)’s cloud services as well.
All these big acquisitions are bringing Google (NASDAQ:GOOGL) into the limelight, and buying credibility as its employing the strategy of audacity. Recently Google (NASDAQ:GOOGL) bought app developer Firebase for mobile cloud so that Google (NASDAQ:GOOGL)’s cloud service remains updated with the latest apps. But there is still work to be done for Google (NASDAQ:GOOGL) as far as distinctiveness is concerned.
Google (NASDAQ:GOOGL) hasn’t done much to make its cloud service seem something special as compared to the rest of the pack. It did close in the gap on Amazon as far as rates are concerned but IBM and Microsoft are still offering inexpensive services with their cloud platform. One wonders if Google (NASDAQ:GOOGL) is being too obsessive about its cloud service. Is the cloud business even capable of serving as a strong booster for the market share price?
Will it benefit the shareholders in the long run or will it turn out to be a mediocre, commodity business? Perhaps it has something to do with ego. Google (NASDAQ:GOOGL) and Amazon are fierce rivals and they can’t stand each other being at the helm of any business. Google (NASDAQ:GOOGL) will not back down from this fight and the fight of cloud services will go on. The question remains: who will really benefit from it?