Google Cloud Computing has ample growth potential reports Baird.
Google Inc. has been accelerating its effort to bolster its cloud computing business in order to give a tough time to Microsoft Corporation and Amazon.com Inc. both of which are playing a significant role in shaping the cloud computing space. Despite the fact that Google’s cloud computing platform is in its initial stage its future is still promising. The reason behind this assumption is that the company is making several innovations on a rampant pace.
Baird Equity Research, the popular Investment firm in an updated note provided to investors and clients appreciated the search engine giant’s effort to bolster its cloud computing space.
The company while visiting Google Nest – where a great chunk of Google’s cloud computing is housed observed two major things. Firstly, analysts at Baird were enthralled to see that the company is extremely open about its cloud computing division. Google has opened a great chunk of its cloud and networking infrastructure to third party app which is an uncommon practice when it comes to enterprise service.
Secondly, the cloud computing division of Google is technologically linked to their core business similar to Amazon. So if they start to use this as an advantage, the company will be able to direct their enterprise clients in an effective manner to certain of its services which is relatively difficult for other companies to accomplish.
Baird also took into consideration that the company provides testimonies from a few of their top notch high profile clients which includes JDA software, PricewaterhouseCoopers along with SunGard Financial Systems so that they can prove that its cloud computing platform is extremely capable. Apart from that the company has many big names like HTC, Best Buy, Coca Cola and General mills as its enterprise client.
However the only reason why Google is not doing relatively well is due to the technological loopholes in its system. But many analysts believe that the company’s aggressive pricing strategies along with its open nature of the cloud computing business can overcome the shortcomings its dealing with currently.
According to BidnessETC, “Baird notes that during the event Google management shed light on the superior economics of sustained use discounts for its compute engine in comparison to Amazon Web Services’ elastic compute.”
Google at this point also stated that it wishes to containerize its cloud computing division so that the developers can move application on various cloud architectures. Thus Baird at this point believes that the company has potential in cloud computing all it needs to do is work on the shortcomings.
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