Analyst: Watch out AWS, Google is serious about cloud
Forrester analyst claims Google is looking to create "serious momentum" in the market, which could spell trouble for AWS and Microsoft
Established public cloud providers "should be concerned" as Google gets serious about its cloud business, according to analyst Forrester.
Last week, Google hired VMware founder Diane Greene to run its new-look cloud business, which combined all of its formerly separate cloud divisions - Google For Work, Cloud Platform and Google Apps. Google said the move would allow it to operate in a "much more integrated, coordinated fashion".
Google does not break out its cloud revenues separately when reporting results, but at a recent event, the firm said it thinks its cloud revenue will surpass its sales from online advertising in five years' time. Its aim is to be referred to as a cloud company by 2020.
Forrester said Google's move proves it is "serious" about making waves in the cloud space.
"Clearly, Google is looking to take advantage of the changing paradigm of compute," said Forrester analyst Robert Stroud.
"The focus of the cloud business is to channel its resources to create serious momentum in the market. Now the journey to success will not be overnight, [but] that said, with its resources that include people and cash, application stack offerings and market awareness, it has the components to differentiate and compete in this rapidly growing market."
Stroud added that Google's intentions should have its rivals worried.
"Watch out AWS!" he said, "AWS, Microsoft, IBM and the other cloud vendors should be concerned with this new entrant into the market. That said, they all have the advantage of being established."
Price wars in the cloud space have been going on furiously in recent months and years, with AWS battling the likes of VMware and Microsoft.
Stroud said Google's moves could accelerate this.
"Without investing in innovation and moving beyond the highly commoditised Infrastructure-as-a-Service play, [established cloud firms] too could be in a discount spiral that could be a feature of cloud in 2016," he said.