Key Google Inc (GOOGL) Services On VMware, Inc. (VMW)


Cloud Computing

Google Inc (NASDAQ:GOOGL) and VMware, Inc. (NYSE:VMW) are working out a deal that could help bolster both companies revenue in the enterprise cloud segment. The companies’ main target is enterprise cloud users. A cloud deal between Google and VMware could put more pressure on Amazon.com, Inc. (NASDAQ:AMZN), which is vying for a strong lead in the cloud segment.

The idea that Google Inc (NASDAQ:GOOGL) and VMware have in the cloud collaboration is to integrate their cloud services that are already popular with corporate customers. VMware intends to enrich its vCloud Air service and the best way to do that, it seems, is adding some of Google’s key cloud products such as BigQuery analytics. The other golden Google cloud solutions that would be integrated into VCloud Air include Datastore, DNS services and Google Cloud Storage. If all goes according to plan, these key cloud solutions will be added to vCloud Air before the end of this year.

With the four key Google Inc (NASDAQ:GOOGL) cloud solutions, VMware will have powerful tools to entice enterprise cloud users to its VCloud Air platform. On its part, Google will be able to put its products before customers that it has always been craving to service – corporate clients.

Single agreement for both Google and VMware services

The companies also hope that integrating their cloud services will enable users to enjoy an easy way to manage their cloud operations, especially if they are already using the services separately from the two companies. The collaboration between Google and VMware will see customers signing only a single agreement to use both Google cloud services and vCloud Air. That is said to be a powerful stategy to woo users in the competitive enterprise cloud segment.

Amazon is currently the big boy in enterprise cloud, but Google Inc (NASDAQ:GOOGL) and VMware hope their strategy will sharpen their competitive edge against Amazon. However, Amazon is not stand still and continues to bolster its cloud offering so that it remains ahead of the game.

Diversified operation

Google Inc (NASDAQ:GOOGL) needs to diversify its revenue sources as it tries to reduce dependence on Internet Search revenue. That is why an opportunity to improve the performance of its cloud segment such as the deal with VMware makes a lot of sense to the company. It was predicted that Google would generate revenue of $1.6 billion from its cloud services in 2014, a tiny figure compared to the overall revenue that the company generates in a year. However, there is attractive growth potential in the cloud segment.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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