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Finance

Google Just Closed a Big Cloud Acquisition

Looker provides tools that help businesses use cloud resources effectively. Google needs acquisitions like Looker to supercharge its cloud business, which currently lags behind Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT).

Google generated $8.9 billion in cloud revenue in 2019—sharp growth from $5.8 billion in 2018. However, Amazon makes more money in the cloud market. The company’s cloud revenue hit $35 billion in 2019. Overall, cloud is Amazon’s most profitable operation. Cloud contributed over 60% of the company’s total operating profit in 2019.

Microsoft doesn’t break out its cloud revenue. However, Synergy Research ranks the company second in the global cloud market with an 18% market share. Amazon tops the chart with a 33% market share, while Google is third with about an 8.0% market share.

Google has set its sights on becoming the largest or at least the second-largest cloud company in the world. The company tapped former Oracle (NASDAQ:ORCL) executive Thomas Kurian in 2019 to run its cloud business.

Under Kurian, Google’s cloud division has been pursuing large enterprise customers. Last month, Google inked a huge cloud deal with Airtel—one of the leading telecom companies in India. The company had another important cloud business win from Vodafone (NYSE:VOD) last fall.

Google has staffed its cloud team with executives from enterprise software companies like Oracle, SAP SE, and Microsoft in an apparent bid to boost its chances of winning big enterprise cloud contracts.

View more information: https://marketrealist.com/2020/02/positive-news-google-just-closed-a-big-cloud-acquisition/

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