Amazon is the market leader in the cloud industry, but other companies are fast catching up by introducing new products and making strategic alliances. The latest in that line is Google’s partnership with Intel. In terms of market share in the cloud industry, AWS is the clear leader with a 45 percent share. Microsoft, Google, and IBM have less than 20 percent of the market share, with Google sitting at a paltry five percent, according to a report released by Synergy.
Over the last year, Google has come up with a slew of changes to make its products more competitive, and to take on leaders like Amazon and Microsoft. It all started with the hiring of VMware’s co-founder Diane Greene last November to head the cloud business. Since then, Google has introduced many new APIs that will make it easier for developers to create applications on the Google platform, rebranded its products in a big way, and has embarked on an aggressive pricing strategy as it has slashed the cost of some products by almost a whopping 80 percent. The latest in such developments is its strategic partnership with another market leader, namely Intel.
On Thursday, Google announced that both the companies are planning to closely work with each other to help enterprises move data across cloud in a more secure way. Further, both the companies would work towards identifying areas where joint integration would pay off for its customers. Specifically, high-end cloud services would be offered soon, and both the companies would be involved in joint marketing efforts.
Through such partnerships, Google aims to reach out to those businesses who haven’t moved to the cloud yet. According to a report by 451 Research, only 41 percent of applications run on public or private cloud, while the remaining sit in data centers. Though the rate of cloud adoption is expected to rise to 60 percent by 2018, there are still a ton of companies that store data and run applications on their own premise. Google wants to tap into this market segment, and encourage more people to move to its cloud. It expects price drops, new products, and partnerships with other industry leaders to do this trick.
This partnership is, in fact, an extension of the warm relationship that has been existing between the two companies for some time now. However, this time the objective is to combine Google’s cloud capabilities with Intel’s advanced hardware in areas such as machine learning, cloud cluster management, and more. Under the terms of this partnership, Google’s cluster management technology called Kubernetes is expected to be a big beneficiary. Since Intel already plays a role in this technology, more collaborations, code optimizations, and higher levels of efficiency are expected to make it a more appealing product for enterprises.
This is not the first time Google is partnering with other companies to expand its offerings. Earlier this year, it partnered with Autodesk to make it easy for entertainment companies to render 3D images, and with another company called Okta to help businesses deploy their data on the cloud securely.
Going forward, we can expect more such moves from Google.
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