We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Alphabet Win Over PayPal to Boost Share in Cloud?
Read MoreHide Full Article
Alphabet Inc. (GOOGL - Free Report) is reportedly on the verge of a big win in the cloud infrastructure services market that is dominated by Amazon.com, Inc. (AMZN - Free Report) with Microsoft Corporation (MSFT - Free Report) as runner-up.
The customer in question is PayPal Holdings, Inc. (PYPL - Free Report) according to a CNBC report. If the deal goes through, it will lend further credibility to Google’s cloud services.
The PayPal Win Matters
Paypal has reportedly handled transactions worth $81.5 billion in 2015, up 23% annually. The company claims to have 188 million active customer accounts across 200 markets. Given its enormous size, we believe that if PayPal moves its entire operations to Google’s cloud, it will significantly add to its cloud revenues and encourage other similar companies to choose Google as well.
Google Boosting Presence in the Cloud
Under Diane Greene who took charge of Google’s cloud and apps units in Nov, 2015, the company has made heavy investments, filled its ranks and acquired smaller cloud companies such as Bepop, Anvato and most recently Orbitera. With 15 data centers already active, Google plans to launch 12 new data centers by 2017.
The company has some big names such as Snapchat, Home Depot, Walt Disney and Spotify in its cloud business client list. Per an Aug 1 Synergy Research Group report, Google presently occupies the fourth position in the cloud services space with a 5% market share. Amazon leads the space with 31% market share, followed by Microsoft at 11% and IBM at 8%.
We think it’s time to enjoy the clouds as tech titans embrace them with open arms!
Given its scope and advantages (cost, scaling, convenience, etc.), it’s not surprising that the demand for cloud computing software and applications is increasing. Cloud vendors usually offer the infrastructure or other technology as a service, which further reduces costs for users.
According to Gartner, the public cloud services market is likely to grow from $175 billion in 2015 to $204 billion in 2016, reflecting 16.5% growth.
Currently, Alphabet shares carry a Zacks Rank #3 (Hold).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Can Alphabet Win Over PayPal to Boost Share in Cloud?
Alphabet Inc. (GOOGL - Free Report) is reportedly on the verge of a big win in the cloud infrastructure services market that is dominated by Amazon.com, Inc. (AMZN - Free Report) with Microsoft Corporation (MSFT - Free Report) as runner-up.
The customer in question is PayPal Holdings, Inc. (PYPL - Free Report) according to a CNBC report. If the deal goes through, it will lend further credibility to Google’s cloud services.
The PayPal Win Matters
Paypal has reportedly handled transactions worth $81.5 billion in 2015, up 23% annually. The company claims to have 188 million active customer accounts across 200 markets. Given its enormous size, we believe that if PayPal moves its entire operations to Google’s cloud, it will significantly add to its cloud revenues and encourage other similar companies to choose Google as well.
Google Boosting Presence in the Cloud
Under Diane Greene who took charge of Google’s cloud and apps units in Nov, 2015, the company has made heavy investments, filled its ranks and acquired smaller cloud companies such as Bepop, Anvato and most recently Orbitera. With 15 data centers already active, Google plans to launch 12 new data centers by 2017.
The company has some big names such as Snapchat, Home Depot, Walt Disney and Spotify in its cloud business client list. Per an Aug 1 Synergy Research Group report, Google presently occupies the fourth position in the cloud services space with a 5% market share. Amazon leads the space with 31% market share, followed by Microsoft at 11% and IBM at 8%.
ALPHABET INC-A Price
ALPHABET INC-A Price | ALPHABET INC-A Quote
Look Up to the Clouds
We think it’s time to enjoy the clouds as tech titans embrace them with open arms!
Given its scope and advantages (cost, scaling, convenience, etc.), it’s not surprising that the demand for cloud computing software and applications is increasing. Cloud vendors usually offer the infrastructure or other technology as a service, which further reduces costs for users.
According to Gartner, the public cloud services market is likely to grow from $175 billion in 2015 to $204 billion in 2016, reflecting 16.5% growth.
Currently, Alphabet shares carry a Zacks Rank #3 (Hold).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>