Google Cloud and information technology services provider CSRA recently extended their partnership with a view to meeting the needs of clients in the government. This is expected to increase the exposure of Google Cloud with regards to the government market. According to a Markets and Markets report, the compounded annual growth rate of the government cloud market will be about 13.4% in the next five years and by 2023 will be worth approximately $49.2 billion.
The partnership between CSRA and Google Cloud will also help the firm strengthen its position against rivals such as Microsoft Azure and Amazon Web Services. Having been unveiled six years ago, Google Cloud has been gaining traction of late in the cloud computing market. In the last quarter Alphabet disclosed that revenues from Google Cloud had hit the $1 billion mark.
Focus on innovation
Currently G Suite boasts of around four million paying customers. Google Cloud has placed a strong emphasis on innovation and access to AutoML tool was recently provided to cloud customers assisting them to build solutions that are more complex.
Part of the reason for the recent growth includes the strategic partnerships that Google Cloud has formed. Last month Google Cloud inked a partnership deal with HubSpot. This came on the back of Google Cloud partnering with Box and Nutanix last year.
The partnership between Google Cloud and CSRA comes in the wake of the latter scoring a win when Shopify picked it over Amazon Web Services. This will see the online stores of Shopify hosted by Google Cloud. This is not the first time that a retail-related firm is choosing Google Cloud or Microsoft Azure over Amazon Web Services.
Other retailers such as Williams-Sonoma and Home Depot have done the same due to the fact that Amazon is a competitor. In the case of Shopify though some of its cloud infrastructure needs will be met by Amazon though most of the business will go to Google Cloud.
Earlier in the year Google Cloud inked a deal with online music streaming service Spotify worth $447 million. Now Spotify has indicated that it will spend nearly $0.5 billion on Google Cloud in the course of the coming three years. Prior to turning to Google Cloud Spotify was a customer of Amazon Web Services. Other big clients that Google Cloud has bagged in the recent past include Snap which committed to spending $2 billion on Google Cloud in a five-year period.