Spotify Moves Its Data to Alphabet Inc (GOOGL)’s Google Cloud Services
For Alphabet Inc (NASDAQ:GOOGL)’s Google, winning Spotify’s business for its cloud services is a big win. The winning of the client meant a lot to the search engine giant, which is trying to place itself as the strong alternative to Amazon.com, Inc. (NASDAQ:AMZN). The Android device maker has a big chunk of space in the cloud even as the market is getting bigger and bigger as it continued to demonstrate its maturity.
Spotify has already started moving user accounts of 250,000 out of the 20 million subscribers to Alphabet Inc (NASDAQ:GOOGL)’s Google cloud services. There were also nearly 55 million additional users. The company indicated that it would shift its complete service in the next one and half years to the search engine giant’s cloud services.
Spotify VP of Engineering, Nicholas Harteau, said that the company can now get the reliability, price and the quality of cloud services that it requires. However, he said that the company could do everything that it was expecting from the cloud services. Cloud computing was just getting started when Spotify established its streaming service about ten years ago. The cloud market is now dominated by Amazon.com, Inc. (NASDAQ:AMZN)’s Amazon Web Services, Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOGL)’s Google, and International Business Machines Corp. (NYSE:IBM).
Terms Of Agreement Not Disclosed
Both Spotify, as well as, Google refused to provide the specifics of the terms of the agreement between them. Harteau said that the company has selected the search engine giant partly because of its services that analyze big amount of data. That included BigQuery, a more advanced tool compared to the data services of other cloud service providers. Adding the high-profile name to Alphabet Inc (NASDAQ:GOGL)’s Google client list could also attract other customers.
Harteau said that the competition was very hot and that the company decided to squeeze the cloud computing for a bigger market competition. He also said that the cost of running software was reduced in cloud computing. He pointed out that both Google and Amazon are operating at a scale which Spotify could never do in its data centers. That also reduced its prices further.
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