Alphabet Inc (GOOG)’s Google to Buy Three Start-ups to Upgrade Cloud Platform

Google MountainView Campus

In a bid to close the gap between itself and other cloud service providers, Alphabet Inc (NASDAQ:GOOG)’s Google has set its sights on acquiring some companies. The search giant which also ventures in other services such as making cars, phones and operating system, still lags behind Amazon Web Services and Microsoft Azure in the public cloud and has identified three companies as the solution to overcome their competition.

Google has an ambitious cloud venture. The company’s vice president of technical infrastructure Urs Holzle proclaimed, late last year, that the aim was for the cloud business revenue to outweigh those of the ad business in five years. Google showed its intent by hiring ex-VMware Inc. co-founder Diane Greene to be the head of the cloud business, after buying her start-up, Bebop.

Reports coming out of California indicate that Greene has been scouting companies and putting them on Google’s wish list so as to bolster and strengthen Google cloud’s service. The list boasts of great and stealthy businesses and is sure to help Google in their bid to get a bigger market share over their rivals.

The idea for the technological giant is to buy the companies and integrate their offerings and services with that of Google’s cloud service. The companies being bought would probably sell their service apps which would then be used for integration. The three companies on the wish list include the Canadian-based favorite e-commerce shop Shopify Inc., payroll app provider Namely Inc., and also Xactly Corp, which is a good sales tracker. When the rumours were flying around on Friday, the shares in Shopify and Xactly were trading higher on the stock market exchange.

As usual, none of those mentioned above companies would offer a comment when called for clarification about the rumours and speculation. Its, however, important to note that the news channels which brought forth the rumours, Re/Code, is highly respectable and has a decent track record when it pertains to this kind of rumours. Re/Code however also report that though there were talks between the parties mentioned above and Google, any talks were still at an early stage and an agreement might not be agreed upon even though the rumours were correct.

The news comes in the wake of recent news that Apple was supplementing their cloud storage with Google. Apple has moved from its exclusive reliance on AWS’s cloud system and is now storing $600 million of iCloud documents and photos on Google servers.

With the GCP conference set to start next Wednesday in San Francisco, this is surely not the last we have heard about the rumours.