Alphabet’s (GOOGL - Free Report) Google Cloud unveiled a new enterprise-grade service namely Cloud AI Platform Pipelines, which is currently at the beta stage, in a bid to strengthen Machine Learning (ML) capabilities.
Notably, the new service enables seamless running of ML workflows by aiding in deployment of repeatable ML pipelines and offering a secure execution environment for ML workflows. Further, it offers Cloud Logging, which helps in real-time log management and analysis.
Moreover, it provides enterprise features such as automatic metadata tracking of artifacts and pipeline versioning. Further, it helps in monitoring and auditing the several processes involved in running ML workflows.
The latest move is in sync with Google’s constant focus toward innovating its ML tools and services. Moreover, this is aiding its technology drive, which has been instrumental in winning investor confidence.
We note that Alphabet has returned 1% over a year against the industry’s decline of 12.7%.
New Service to Aid Growth
We believe Cloud AI Platform Pipelines is likely to bolster the adoption rate of Google Cloud managed services as it allows integration with the company’s AI Platform Training and Serving, Cloud Functions, BigQuery and Dataflow services, to name a few.
Additionally, the service under review provides the benefit of easy installation and management as it runs on Google Kubernetes Engine cluster. It also offers easy and authenticated access to the Pipelines UI.
All these benefits of the new service will help Google in capitalizing on growing demand for ML based cloud services globally.
Per a report from Mordor Intelligence, global Machine Learning as a Service (MLaaS) market is expected to witness a CAGR of 43% between 2020 and 2025 and hit $8.5 billion by 2025.
Further, a Technavio report shows that this particular market is expected to see a CAGR of 38% between 2019 and 2023.
Google is well poised to reap benefits from this potential market on the heels of its strengthening ML initiatives. Apart from the latest service, the company offers several other ML centric services including Cloud AutoML — enables creation of customized ML models, Kubeflow — a free and open-source ML platform, and AI Platform Prediction — aids in deployment of trained ML models.
Further, the latest move marks the expansion of Google Cloud services portfolio. Consequently, strengthening cloud offerings are likely to drive customer momentum, thus contributing to the top line.
Notably, Google cloud generated revenues of $2.6 billion, which accounted for 5.7% of the total revenues, in fourth-quarter 2019. Further, the figure improved 53% on a year-over-year basis.
Google Ups ML Game
Google Cloud has ramped up the ML game against other cloud players including Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) and International Business Machines (IBM - Free Report) , which are also leaving no stone unturned to bolster presence in the MLaaS market.
Microsoft offers Azure Machine Learning, which helps in building and deploying ML models seamlessly.
Amazon Web Services (AWS) offers Amazon Personalize that helps in training and deployment of private ML models. Further, the service aids in development of applications by managing the entire ML pipeline, which remains noteworthy.
Also, AWS offers Amazon SageMaker that aids in building, training, and deploying ML models at any scale seamlessly.
Meanwhile, IBM Cloud offers Watson Machine Learning, which also helps in training and deploying ML models and neural networks.
Nevertheless, Google Cloud’s expanding ML-based service portfolio is expected to strengthen its competitive position against the abovementioned companies.
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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