Goldman Sachs’s Heather Bellini and Heath Terry report findings of cloud consulting firm RightScale, which shows Alphabet’s Google division trailing far behind Amazon and Microsoft in users. The report raises the question of whether Alphabet needs to buy a company to help Google make some inroads with enterprise customers.
Goldman Sachs analysts Heather Bellini and Heath Terry, and colleagues today issued an interesting report that summarizes points from a discussion about cloud computing that has implications for Alphabet (GOOGL).
The authors spoke with RightScale, a firm that helps enterprises make the transition to cloud computing.
RightScale CEO Michael Crandall told them about the trends his customers, and their views on Google, on Microsoft’s (MSFT) Azure cloud service, and on Amazon (AMZN).
One takeaway the authors had was that Google’s cloud service is still “far behind Amazon and Azure.”
sThat’s based on the fact that RightScale only 15% of customers report having used Google. That’s up from 10% a year earlier, but far below the 60% or so who report having used Amazon, and the 30% who report having used Azure.
Crandall told the analysts that Google has “the simplest and most cost-effective structure” for public cloud computing, which allows people to save money with things like “continued-use discounts.”
However, Crandall tells Goldman that “in order to be successful, GCP must fully embrace the push into enterprise,” referring to Google’s cloud service, “potentially through an acquisition that would provide it with greater access into the enterprise market.”
“Specifically, he believes that the acquisition of a managed service provider or system integrator could make sense to add enterprise credibility, moreso than the acquisition of a cloud application.”
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