Five Key Reasons Why Google Cloud’s Strategy Continues to Win in the Enterprise

A few days ago, CNBC broke the news that PayPal is favoring Google Cloud to become its cloud provider. Although the report made it clear that PayPal hasn’t yet made a final decision, the market interpreted the news as another strong validation for Google Cloud.

Whether the agreement with PayPal materializes or not, this is another sign that Google Cloud is becoming more and more competitive under Diane Green’s leadership. In just a few months, Google Cloud has announced several high profile customers including Home Depot, Spotify and Snapchat just to name a few.

The impressive progress of Google Cloud in the enterprise space is result of a strategy focused on narrowing the distance with market leaders such as Amazon and Microsoft while also aggressively investing and taking a leadership position in new technology fronts. There are many things that Google Cloud is doing well. Let’s list a few:

Enterprise Readiness

In recent months, Google Cloud has aggressively invested un areas such as compliance and security which are essential to win in highly regulated enterprise environments. Additionally, Google Cloud has been able to establish key partnerships to expand its trusted distribution channels within the enterprise.

Pricing

The prices for IaaS and PaaS technologies is a race to the bottom but Google Cloud regularly remains as the most affordable PaaS in the market. The aggressiveness of the pricing model has allowed Google Cloud to become extremely competitive in the enterprise market.

Large-Scale Consumer Customers

By powering large scale consumer platforms such as Snapchat, Spotify and now possibly PayPal, Google eCloud is establishing credibility as a highly scalable and robust cloud platform. That level of credibility is essential to penetrate the enterprise market.

Investing in New Technical Markets

Google has made it clear that machine learning and artificial intelligence will be the cornerstone of the future of Google Cloud. The investment in these new areas has been a strong differentiator of Google Cloud compared to some of its competitors.

Targeting Microsoft and IBM

The press continues to focus on Google Cloud rivalry with AWS. However, it is very clear that the core of Google Cloud’s current strategy has been focused on displacing IBM’s Bluemix and Microsoft’s Azure as the 3rd and 2nd PaaS platforms in the market respectively.

There are other reasons that we can list as of why Google Cloud is becoming successful within enterprise customers but these 5 are certainly relevant. For now, Diane Green’s strategy is certainly having a visible positive impact.

Written by

CEO of IntoTheBlock, Chief Scientist at Invector Labs, Guest lecturer at Columbia University, Angel Investor, Author, Speaker.

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