Google gets aggressive on the cloud with new data centers: report

There’s gold in that there cloud, no rainbow required. The public cloud services market is expected to expand by $29 billion to $204 billion this year over last, according to IT research firm Gartner.

The “infrastructure as a service” portion of cloud-related enterprise involves storage and networking provided to customers on demand. Gartner expects that sub-sector to grow 38 percent to $22 billion this year over 2015.

In this market the mighty Google finds itself somewhat dwarfed by its competition. Amazon’s cloud department, “Amazon Web Services,” had $8 billion in sales last year, compared to Google’s $500 million in cloud sales, according to the Wall Street Journal.

“Fears of a global slowdown haven’t curbed the drive of businesses shifting more of their computing and software needs to the cloud,” the WSJ reported last week.

Google is far behind Amazon on cloud sales, and also trails Microsoft, which saw six percent revenue growth in its “Intelligent Cloud” business in the second half of last year, according to the WSJ.

Now Google is taking aggressive action to boost its market share in cloud services. Over the next few months, the company will add data centers – warehouses full of computers that make up the cloud, and store customers’ data – in Oregon and Japan, Bloomberg reported. Between 12 and 18 months from now, Google will open 10 more data centers, either building or leasing them, according to Bloomberg.

Bloomberg chalked up Google’s cloud-services expansion to appointment of the firm’s new head of cloud businesses, Diane Greene, a Google board member since 2012. “The cloud is a revolution, I mean it’s rivaling the industrial revolution, and it’s pretty fun being this involved,” Greene told Bloomberg.

 

Photo: A Google data center in Council Bluffs, Iowa (AP Photo/Google/Connie Zhou)

 

 

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