Alphabet's Key Strategies for Non-Advertising Business Growth
Google integrates machine learning capabilities with the cloud
In the previous part of this series, we discussed how Google (GOOG) plans to grow its share in the rapidly growing cloud services market. Google claims that the main factor that will differentiate it from competitors is serving enterprises with machine learning capabilities integrated with cloud technology. Google anticipates using its machine learning capabilities to help enterprises “really understand their data, understand how best they can do what their core competency is and really revolutionize around that.”
During the Next 2016 conference held in San Francisco in March this year, Google mentioned that its partners such as Spotify and Coca-Cola (KO) have benefited from Google’s cloud technology. Spotify is a big win for Google because it is the largest player in the paid music streaming industry, with 30 million paid subscribers. However, Apple (AAPL) Music could be a threat to Spotify’s leadership as Apple managed to garner 13 million paid subscribers within the first year of its launch.
Competition for Google in the cloud space remains high
Despite these efforts from Google, it has a lot of work to do to catch up with cloud leaders Amazon (AMZN) AWS (Amazon Web Services) and Microsoft (MSFT) Azure. Amazon added 722 new features to AWS last year while launching its relational database called Amazon Aurora in July. The company claims that Aurora is its fastest-growing service ever. Amazon also launched Amazon QuickSight for AWS. QuickSight is a big data analytics and visualization tool. As the chart above shows, Amazon has managed to grow AWS at a healthy rate.
Microsoft’s Azure has shown even more rapid growth. The segment recorded YoY growth of 140% in 2015 compared to 2014. Microsoft’s cloud-based solutions include the Azure platform, Office 365, and Dynamics CRM.
In the next article in this series, we’ll explore key trends in the cloud market.
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