Machine learning expertise
It’s now been more than a year since Google (GOOG) got serious in the business of selling cloud solutions. In November 2015, Google appointed Diane Greene, co-founder of VMware (VMW), to lead Google’s cloud business. Google defined Greene as “a great leader who understands this space deeply.” Since then, Google has made strong progress in enhancing its cloud solutions.
Last quarter, Google upgraded its Google BigQuery data analytics software and made Google Cloud Machine Learning available for businesses for training purposes. Google claims that the main factor that will differentiate it from competitors will be serving enterprises with machine learning capabilities integrated with cloud technology.
Google is meanwhile looking to use its machine learning capabilities to help enterprises “really understand their data, understand how best they can do what their core competency is and really revolutionize around that.” Last quarter, Google forged partnerships with Box (BOX) and Accenture (ACN) to improve its cloud solutions.
Lagging behind Amazon in the cloud
Despite these efforts, Google has a lot of work to do to catch up with Amazon.com’s (AMZN) AWS (Amazon Web Services) and Microsoft’s (MSFT) Azure. According to a recent report from Synergy Research Group, Amazon accounts for a 45% share of the worldwide public IaaS (infrastructure-as-a-service) market—a key segment of the cloud computing market. The report noted that Microsoft, Google, and IBM (IBM) are smaller players in this market.
Meanwhile, Amazon’s Cloud division is growing rapidly, posting 55% growth in 3Q16, with an annual revenue run rate of $13 billion.