Google pays $380 million for a seat at the enterprise cloud table

News Analysis
Jan 25, 20163 mins

To build up its credibility as an enterprise cloud vendor, Google paid a hefty amount to bring on VMware co-founder Diane Greene.

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Google is a confusing beast when it comes to the cloud. It is, after all, the creator of a global infrastructure footprint that is almost unimaginable in its immensity. Google engineers are the best of the best, and the company has, since its inception, pushed the boundaries of what is possible when it comes to computing.

One would be forgiven for assuming that this real credibility would translate into Google being a credible vendor of enterprise cloud products. The reality, however, is somewhat different. Google has, to an extent, been its own worst enemy. So confident in its engineering-led approach to enterprise adoption, the company seems to have forgotten the overarching truism of enterprise IT – that it is all the non-engineering stuff that transforms a vendor form a bunch of smart technologies to a true player. Sales, support, and a bunch of activities that aren’t actually connected with building technology are all required when selling technology into the enterprise.

As I said, Google has always struggled when it comes to these aspects, and its relative failure to really make a dent in the cloud computing world has been a direct result of this. In comparison, Amazon Web Services (AWS) has, in recent years, started to realize the importance of these non-engineering-related functions, and is starting to move the needle when it comes to enterprise penetration.

For all these reasons, there was much interest when Google announced a month or so ago that it was acquiring the early-stage company bebop. While bebop was still in stealth, and little was known of what it was doing, the fact that it was founded by none other than Diane Greene, co-founder and former CEO of VMware, raised eyebrows. No stranger to Google, Greene actually sits on its board, but appeared to have had little impact on Google’s enterprise focus.

With the acquisition of bebop, Google got some technology, but more importantly got Greene to take on the role running all of Google’s enterprise cloud offerings: Google for Work, Cloud Platform, and Google Apps will all come under her aegis.

A recent SEC release showed just how serious Google is about this opportunity – the company paid over $380 million for bebop. Sure, it was a stock-based transaction, but the sheer size of the deal shows that Google is, at last, starting to understand what it needs to do to catch up with AWS, Microsoft, and the other enterprise cloud players.

There is absolutely no doubt that Google can deliver enterprise-grade technology, and now with Greene on board, they should be able to deliver a real enterprise-grade business. 2016 is going to be very interesting to watch.

benkepes

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. His business interests include a diverse range of industries from manufacturing to property to technology. As a technology commentator he has a broad presence both in the traditional media and extensively online. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the cloud. His areas of interest extend to aviation technology, enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

He is a globally recognized subject matter expert with an extensive following across multiple channels. His commentary has been published on Forbes, ReadWriteWeb, GigaOm, The Guardian and a wide variety of publications – both print and online. Often included in lists of the most influential technology thinkers globally, Ben is also an active member of the Clouderati, a global group of cloud thought leaders and is in demand as a speaker at conferences and events all around the world.

As organizations react to the demands for more flexible working environments, the impacts of the economic downturn and the existence of multiple form-factor devices and ubiquitous connectivity, Cloud computing stands alone as the technology paradigm that enables the convergence of those trends -- Ben’s insight into these factors has helped organizations large and small, buy-side and sell-side, to navigate a challenging path from the old paradigm to the new one.

Ben is passionate about technology as an enabler and enjoys exploring that theme in various settings.

The opinions expressed in this blog are those of Ben Kepes and do not necessarily represent those of IDG Communications, Inc., its parent, subsidiary or affiliated companies.

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