Alphabet (GOOGL) - Get Alphabet Inc. Report shares firmed after the advertising and technology company said its Google Cloud division purchased Cornerstone Technology, which helps customers move their workloads from mainframe computers to the cloud.
The Netherlands company will help Google Cloud do the same thing. The companies didn’t disclose the deal terms.
Cornerstone brings "experience and innovative solutions to our portfolio of products and services that help customers modernize their infrastructure and applications,” Howard Weale, director of transformation practice for Google Cloud, said in a statement.
“Their capabilities will form the cornerstone of our mainframe-to-Google Cloud Platform solutions, and customers are able to take advantage of these new capabilities now through our professional services organization and our partner network.”
Alphabet is emphasizing its cloud services more and more, as growth slows in its core advertising business.
In its fourth-quarter earnings report, Alphabet disclosed Google Cloud’s revenue for the first time. That revenue totaled $2.61 billion in the quarter and $8.92 billion for all of 2019.
This represents increases of 53%, both from $1.71 billion in the year-earlier quarter and from $5.84 billion for all of 2018.
Analysts have lauded Alphabet’s cloud strategy. “Among the firm’s investment areas, we particularly applaud the efforts to gain a stronger foothold in the public cloud market, which is expected to grow more than 25% annually through 2021,” Morningstar analyst Ali Mogharabi wrote in a report earlier this month.
“Google has quickly leveraged the technological expertise it applied to creating and maintaining its private cloud platform to increase its market share in this space, driving additional revenue growth, creating more operating leverage, and expanding its operating margin, which we expect will continue.”
At last check Google shares were up 0.7% near $1,530.
The author of this story owns shares of Alphabet.