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Google Cloud Head of India Resigns, Joins Disney Unit


Sep. 17 2019, Published 1:39 p.m. ET

The head of Google’s (GOOGL) cloud computing business in India, Nitin Bawankule, is set to leave the company at the end of this month, reports The Economic Times. According to the report, Bawankule is headed to Star India, a Walt Disney (DIS) subsidiary. Disney came to own Star India through its purchase of Fox’s (FOXA) assets for over $71 billion.

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Google looks to turn tables on Microsoft in cloud computing

Bawankule’s departure comes at a critical time for GOOGL’s cloud business. Presently, Google trails Amazon (AMZN) and Microsoft (MSFT) in terms of global cloud market share. According to Synergy Research, Google finished the second quarter with 8.0% of the global cloud market. It ranked third behind Amazon and Microsoft, which held 33% and 16% of the market, respectively.

However, Google hopes to close the gap with these market leaders. It aims to beat Microsoft to become the world’s second-largest cloud provider in five years.

India’s fast-growing cloud computing market was worth $2.5 billion last year and could top $7.0 billion by 2022, according to NASSCOM estimates. Google has shown it is counting on India to boost its global cloud market share. As we’ve discussed, Google aims to double its Indian cloud salesforce by the end of this year to catch up with rivals Amazon and Microsoft.

In July, Mint reported that Bawankule talked about the huge opportunity in India’s cloud computing market, particularly in government projects. “Google Cloud will soon have dedicated sales teams working on the government vertical in the country,” he said.

Google keen to diversify outside advertising

Presently, Google derives most of its revenue from advertising. However, the company is keen to diversify its business, as advertising has become more competitive. This year, eMarketer predicts Google’s share of the US digital advertising market will drop to 37.2% from 38.2% last year. In contrast, it expects Amazon’s share of the market to jump to 8.8% from 6.8%. Google has ventured into selling cloud computing services and making a range of hardware products to generate non-advertising revenue.


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