Can Diane Greene Help Alphabet Inc (NASDAQ:GOOG) Compete With AWS and Azure In The Cloud?


Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) recently hired former VMware, Inc. (NYSE:VMW) cofounder, Diane Greene, to head its cloud affairs. But the question that quickly comes to mind is whether Greene has the answer to put Alphabet in the lead in the cloud. Alphabet’s cloud business is currently dwarfed by Amazon.com, Inc. (NASDAQ:AMZN)’s AWS and Microsoft Corporation (NASDAQ:MSFT)’s Azure.

The hiring of Greene and acquiring her cloud startup Bebop have been interpreted as attempts by Alphabet to try and turn tables on cloud rivals.  Amazon and Microsoft have continued to draw enterprise cloud buyers to their platforms at the expense of Google Cloud Platform.

Several factors appear to hold Alphabet Inc (NASDAQ:GOOG) back in the cloud. While being a late entry to cloud computing business is one of Alphabet’s drawbacks, a weak marketing strategy has also failed the service.

Alphabet has the technology

Alphabet Inc (NASDAQ:GOOG) already boasts great cloud technology and an impressive team of cloud engineers. For example, the company is said to have the best-in-class cloud compute, storage, networking and big data solutions.

As if to demonstrate its cloud technology prowess, Alphabet has come up with a structure that greatly simplifies its cloud options, thus making it easier for customers to choose machine types. Amazon’s AWS and Microsoft’s Azure both have complicated option structures.

Alphabet’s undoing is weak business strategy

As much as Alphabet Inc (NASDAQ:GOOG) has the kind of technology that should be attractive to cloud adopters, many enterprise cloud buyers readily turn to AWS and Azure, primarily because they believe those platforms are more suitable for their businesses than Alphabet’s Google Cloud Platform.

With Greene at the helm of its cloud businesses, Alphabet Inc (NASDAQ:GOOG) hopes to rapidly transform to challenge the supremacy of Amazon and Microsoft in the cloud. It is believed that Greene would seek to integrate Alphabet’s cloud with productivity products such as Google Apps and Google for Work in the same way Microsoft deploys Office 365 alongside Azure.

Additionally, Greene is expected to increase targeting of large customers moving their applications to the cloud for the first time.

Greene has a long history building successful clouds. She cofounded VMware with her husband and they later sold the company to EMC Corporation (NYSE:EMC) for $635 million back in 2003.

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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