Google is taking the gloves off in the cloud market.
On the second day of its Cloud Next confab, Alphabet's (GOOGL) - Get Alphabet Inc. Class A Report Google made its case for why enterprises should choose it as a primary cloud provider over Amazon's (AMZN) - Get Amazon.com, Inc. Report AWS or Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report Azure. Google is a distant third in cloud spend, at roughly 10% market share to Azure's 16% and Amazon's 32%, according to Canalys.
On Tuesday, Google executives rolled out Anthos, a revamped cloud services platform that embraces a multi-cloud or hybrid cloud strategy, meaning that the majority of enterprises that use multiple clouds for different tasks can manage them all from one open-source terminal within Google Cloud. On Wednesday, Google pitched attendees on the idea that Google Cloud can also deliver AI, security and data privacy like no other provider can.
Alphabet shares were up 0.32% to $1,207.06 on Wednesday and are up 15% this year.
"Your data is your data, no one else's. Your AI models are your AI models, no one else's. No one at Google will access you data without your permission...no other cloud provider provides you these facilities," Google Cloud's new CEO, Thomas Kurian, told the audience.
Retail and delivery use cases figured prominently into Google's presentation, with the CIO of UPS (UPS) - Get United Parcel Service, Inc. Class B Report , Juan Perez, joining Kurian onstage to demonstrate how the delivery giant uses Google Cloud's machine learning tools to quickly identify and forecast logistics issues in delivering millions of packages per day with as few delays as possible.
Google also unveiled its first ever vertical-specific cloud platform, called Google Cloud for Retail, aimed at delivering cloud services most pertinent to the retail industry, covering everything from merchandising to customer support."Our solutions are focused around six core pillars in the retail value chain and aim to help companies apply cloud technology to get the most from each," said Pravin Pillai, Google's head of industry solutions marketing.
"Google's strategy is to meet customers where they are and not try to convince them to go to the cloud, but to get more revenue from those who want to go to the cloud," said Patrick Moorhead of Moor Strategy & Insights. "This means going after AWS and Azure's business and at least being part of the strategic and deal conversations with enterprises."
A dizzying number of announcements were packed into Google's keynotes, much of which also centered around the need for organizations to place security and privacy at the core of cloud computing. A number of new security-focused features encompassing threat detection and stricter access management, while also allowing for other bolted-on solutions, are a "key differentiator" between Google Cloud and other providers, Google's engineering director Jennifer Lin told reporters.
For the non-technical crowd, Google executives also sought to explain how under-the-hood improvements to Google Cloud can deliver better experiences in other business functions with a slate of improvements to G Suite, Google's productivity suite that includes Gmail and Google Drive. Examples included the ability to manage appointments and meetings through Google Assistant, and the closer integration of Hangouts with Gmail.
In addition to the tech side of the equation, Kurian is also rapidly spinning up a sales division -- an area where Google Cloud had lagged behind competitors -- to get Anthos into more organizations.