Google Cloud Needs Acquisitions To Challenge Amazon, Analyst Says
Summary
The Google cloud-computing business should make big acquisitions to gain traction in the corporate market in the wake of a management shake-up, a Wall Street analyst says.X"Its time to tap Alphabets piggy bank to boost GCP (Google Cloud Platform)," Baird analyst Colin Sebastian said in a report Monday."As Google seeks to carve out greater share in the expanding enterprise cloud services market, we believe the company should embark on a more aggressive shopping spree.Alphabet announced Oct. 16 that it would replace the head of its Google cloud business, Diane Greene, with former Oracle ( ORCL ) executive Thomas Kurian."GCP is still the number-three player in the cloud platform market, and the ramp in revenues and enterprise customers is not as rapid as the potential for the business would suggest," Sebastian said.