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Google Takes on Cloud Computing for the Enterprise

April 6, 2017 | From Virtual Forge GmbH

With the enterprise cloud's strong annual growth, major tech players are turning their attention to the cloud computing market that's worth hundreds of billions of dollars.

Gartner estimates that over the next five years, the enterprise cloud computing market will affect nearly $1 Trillion in IT spending.

When most people think of Google and their array of services, they probably think of Google's standout consumer services - Google Search, Gmail, and YouTube almost immediately come to mind. What doesn't usually come to mind is Google's Enterprise services. But if it's any indication from their cloud computing department, that's all about to change.

Diane Greene, SVP of Google Cloud services has been tasked with heading up Google's foray into the enterprise market - a market that she says they're uniquely poised to win over. For consumers and small businesses, cloud services offer a lot of benefits for a relatively small price tag. It's been fairly easy for cloud services companies to win over these types of customers because cloud computing offers a pretty large range of benefits that allows customers to tap into all types of useful and productivity enhancing apps and SaaS providers. Add to that a significant growth in individuals turning to consulting and freelancing to boost their incomes, as well as an increase in remote, distributed teams, and cloud computing becomes less of a bonus and more of a necessity.

For large enterprise companies, however, the switch to the cloud has been a lot slower and more resistant to change. That's not necessarily because larger companies have more moving parts and more layers of management that need to sign off on a transition of this size. Although that's part of it, the bigger issue lies in the sheer quantity and type of data that most enterprise organizations are sitting on. Add to that concerns over data security and safety and strict compliance regulations, and it's a lot easier to understand why enterprise companies have taken a lot longer to warm up to the cloud computing market. But it seems that, finally, enterprise organizations are adopting cloud computing as part of their overall IT infrastructure.

According to an annual study from RightScale's 2016 State of the Cloud report, 17% of enterprise companies have more than 1,000 virtual machines in the public cloud. That's up 13% from the prior year. Even stronger growth is being recorded in the private cloud, with 31% of enterprise companies running more than 1,000 VMs. The enterprise cloud market is growing so fast that Gartner Research estimates that more than $1 Trillion in IT budgets will be affected by enterprise cloud solutions over the next five years. With that much money on the line, it's no surprise that Google is making a strong push to gain some of the market.

That doesn't mean that it's going to be easy, though. Currently the public cloud is dominated by Amazon Web Services and Microsoft's Azure platform, which has seen steady growth over the past few years. When it comes to the private enterprise cloud computing, Google is going to have to go up against behemoths like IBM, Cisco, and Citrix - all of whom already have existing relationships with large enterprise organizations.

Nonetheless, it'll be interesting to watch the enterprise cloud computing industry over the next five years to see which brands emerge as major players. If Google's ability to take over a major chunk of market share in nearly every industry they end up going after has taught us one thing it's that you can't underestimate them.

Topics: Cloud Computing



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