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Google Acquires CloudSimple, Enhances Cloud Capabilities

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Alphabet’s (GOOGL - Free Report) division Google acquired a Santa Clara, CA based-startup named CloudSimple, which is a VMware (VMW - Free Report) cloud verified partner, in a bid to strengthen cloud capabilities.

Further, the startup is an enterprise software firm that offers secured and high-performance environments to run VMware workloads in the cloud.

Moreover, CloudSimple helps businesses in migrating databases, information, applications and other systems from in-house data centers to the public cloud.

Notably, Google partnered with CloudSimple earlier this year to enable cloud customers to transfer their VMware workloads from on-premises data centers to Google Cloud VMware Solution.

Following the buyout, CloudSimple will be part of Google Cloud, which remains a very crucial to prospects of Google.

Buyout to Aid Customer Momentum

CloudSimple, which specializes in VMware virtualization software, will strengthen Google Cloud’s products and services offerings.

Moreover, the buyout bodes well for the company’s continued focus toward enhancing capabilities in IT infrastructure modernization, which has been gaining steam among enterprises.

Notably, several enterprises leverage VMware to run virtual desktops, databases like Oracle and SQL and business applications – ERP and CRM, in on-premises environments. Further, these enterprises also run workloads related to reporting and analytics.

Google Cloud will become more efficient following the integration of CloudSimple.

Consequently, the latest acquisition will help Google in gaining traction among enterprise customers, which in turn will strengthen its market position.

Alphabet Inc. Revenue (TTM)

Alphabet Inc. Revenue (TTM)

Alphabet Inc. revenue-ttm | Alphabet Inc. Quote

Rising Cloud Competition

Enterprise customer base is crucial to cloud service providers as their spending to modernize IT infrastructure is increasing.

The enterprises are rapidly shifting from traditional application software to software as a service (SaaS), which is expected to contribute to the public cloud spending globally.

Given this upbeat scenario, not only Google but also Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) are making every effort to improve service offerings to reach customers, thus intensifying the cloud competition.

We note that Amazon Web Services (AWS) offers VMware Cloud on AWS, which helps in running broad range of enterprise workloads. Moreover, AWS provides scale, management and protection to the infrastructure supporting these workloads.

Further, Microsoft Azure enables customers to migrate their VMware-based workloads from their data centers to Azure with the help of Azure VMware Solutions.

Nevertheless, Google’s acquisition of CloudSimple is likely to aid it in delivering enhanced experience to enterprise customers. Moreover, customers will utilize VMware tools and protect their investments with VMware on Google Cloud.

Currently, Google parent Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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