Beijing Business Daily reporter: Tao Feng, Tang Yitian
In the cloud business, Google is not willing to be a weak person who survives in the cracks. On the 9th local time, the Google Cloud Next 2019 conference opened, Google Cloud's opening posture was more clear, and announced a strategic partnership with seven open source companies. In the face of cloud giants ——“3A” (Amazon AWS, Alibaba Cloud, Microsoft Azure), Google’s single-handedness is powerless, and “the fight” may be even bigger.
At the meeting, Google announced the identity of its new partners, Confluent, DataStax, Elastic, InfluxData, MongoDB, Neo4j and Redis Labs, which together are the leading open source technology companies. This is the new backing that Google has found for itself.
“Let customers easily use open source technology in a cloud-native way. & rdquo; Google condensed its goal in the cloud business into one sentence. According to Google's ideas, by working with these open source technology companies, Google can provide customers with commercial support, comprehensive billing and unified management tools.
Google’s opening is not just about embracing new partners, but also trying to shake hands with competitors. At the 2019 conference, Anthos, a cloudy management platform based on Google Cloud Services, was also one of the highlights. It is understood that Anthos is just a hosting platform that will run on a third-party cloud, including the largest competitors Amazon AWS and Microsoft Azure.
Behind the generosity is the embarrassing situation of Google Cloud’s business. Research firm Gartner's data shows that in the global cloud market, Amazon AWS is in the forefront, with a market share of 51.8%, followed by Microsoft Azure's 13.3% and Alibaba's 4.6%. Google Cloud's market share is only 3.3%.
Although more than 90% of the world's search is driven by Google's cloud infrastructure, it has not helped the development of Google's cloud business. Data show that in the third quarter of 2018, Google's other business revenues were $4.64 billion, an increase of only about $240 million from the previous quarter. This part of the business includes Nest hardware products, Google Play, G Suite and Google Cloud Platform (GCP). In contrast, Amazon AWS cloud services are growing wildly. AWS's overall revenue in 2018 was US$25.7 billion, up 47% year-on-year; profit increased 69% year-on-year to US$7.322 billion, accounting for 62.5% of Amazon's total profit.
Under the huge gap, it is reasonable for Google to want to report the group to warm. However, Google's opening is more like a helpless strategy of “self-damaging to hurt the enemy”. Anthos can run on a third-party cloud, which may help it increase its share quickly, but this open strategy also adds customers to its rivals, especially AWS and Azure.
But at least Google's open attitude has won the "people's heart". Amazon AWS has been criticized for using commercialization of open source projects without giving back to the open source community. “These cloud service providers are like vampires! Paul Dix, co-founder and CEO of InfluxData, said in an interview that collecting open source code to earn revenue does not necessarily pay off for public projects. After Tuesday, Dix applauded Google’s move.
In fact, Google’s ambitions for the cloud market have never stopped. In the last quarter of last year, the cloud service department added more than 4,000 employees, the largest increase among all departments. Google is also eyeing the cloud gaming space that has not yet been rushed. At the Global Game Developers Conference in 2019, Google launched a new streaming media service platform, Stadia, to disrupt the existing gameplay.