In order to outperform Amazon in the cloud computing market, Google and Cisco announce a partnership. The two companies will develop a hybrid cloud offering for businesses that want to use both the cloud and their own data centers.
At present, the cloud computing market is largely dominated by Amazon. Founded in 2006, Amazon’s Web Services Amazon’s cloud division currently generates more than $ 4 billion per quarter. According to Synergy Research Group, AWS has 34% share of the cloud market, while Google ranks fourth behind Microsoft and IBM with only 5% market share.
Cloud: Google and Cisco Announce Partnership
Since Diane Greene took over the Google cloud division in 2015, her ambition is to surpass Amazon Web Services. Today, again with the goal of achieving this ambitious goal, Google and Cisco have just announced a partnership.
With this alliance, the two companies will be able to take advantage of Google’s expertise in data center building and open source software development, as well as the massive global sales force, customer service and know-how. to do in terms of Cisco security. The goal of this collaboration is to develop and sell new cloud services and technologies.
Cloud: a hybrid offer to appeal to large companies
There is indeed an opportunity for Google and Cisco to surpass Amazon Web Services in the hybrid cloud area. In fact, large companies with their own servers refuse to transfer all their data to Amazon’s cloud. They usually prefer to start new projects in the cloud, and leave most of their data on their own data centers. This is particularly the case for companies subject to very strict regulations such as banks and hospitals.
These are the companies that Google wants to attract by offering them a hybrid cloud offer developed with Cisco. This offer will bring together various Google tools that businesses can use to work with cloud services without going head to head in the cloud. For its part, Cisco will guarantee the security, customer service and networking of this new offering.
Cloud: a healthy alliance for Cisco
Obviously, this collaboration with Google could be beneficial for Cisco. The firm struggles to continue its growth by just selling routers, an activity that once accounted for most of its revenues. In the same way, its communication and collaboration software are confronted with a fierce competition.
Cisco’s strength lies in its relationships with major corporations and governments around the world. These entities are currently seeking application development tools and platforms dedicated to Machine Learning. In fact, Google services could help Cisco retain this valuable customer base.
In particular, the open source products Kubernetes and Istio seem to match the needs of these customers. Kubernetes enables the development and deployment of applications within digital containers. Istio allows you to manage microservices or small software by combining them to perform different functions. Both technologies allow programmers to develop software faster with flexibility.
According to Chuck Robbins, CEO of Cisco since 2015, the firm’s customers are eager for the speed and flexibility of the cloud, but they want to retain the ability to launch their applications on both private data centers and the public cloud. This new hybrid cloud offering therefore perfectly meets these requirements.
The new hybrid cloud offer from Google and Cisco will be available for a first wave of customers starting in the first half of 2018, and will be available to everyone in the second half of the year. It is unclear for the moment how the revenues generated by this collaboration will be divided. Robbins also specifies that the firm does not prohibit a similar partnership with another cloud service provider if the opportunity arises.