Google Is Closing the Gap with Cloud Leaders

Google launches single-tenant cloud environment option

Alphabet’s (GOOGL) Google now offers a single-tenant server option for its cloud computing customers. The offering is currently in beta, according to a company blog post.

Typically, cloud users share servers with other customers in what is known as a multi-tenant cloud environment. However, because of internal policies and regulatory requirements, server sharing may not appeal to some cloud purchasers, raising the need for a single-tenant cloud environment, where a cloud customer is assigned a dedicated server.

Amazon (AMZN) and Microsoft (MSFT), two of the world’s leading cloud vendors, have been offering single-tenant cloud environment options for some time. Google is moving to catch up in this area. Offering a single-tenant cloud environment option could make Google’s cloud more appealing to customers with high compliance requirements.

Google Is Closing the Gap with Cloud Leaders

Google’s share of the cloud market expanded to 6.0% in the first quarter

Google controlled 6.0% of the global cloud computing market in the first quarter, up from 5.0% a year earlier, according to Synergy Research. Microsoft’s share of the market rose to 13% from 10% a year earlier, while Amazon’s share stayed flat at 33% from a year earlier.

Google makes ~$1.0 billion in cloud revenue

Google, whose cloud customers include Spotify (SPOT) and Twitter (TWTR), last said its cloud revenue averages at $1.0 billion per quarter, less than a fifth of the $5.4 billion in cloud revenue Amazon saw in the first quarter. Alibaba (BABA), another rising star in the global cloud vendor stage, reported a 103% year-over-year increase in cloud sales to $699 million in the first quarter.