Google Cloud Would Need to Adopt Several Recommendations that Would Improve Its Business Discussion How are you bro? I have another part of the same paper

Google Cloud Would Need to Adopt Several Recommendations that Would Improve Its Business Discussion How are you bro? I have another part of the same paper we worked on that I need your help with. It is about coming up with recommendations for Google Cloud. I attached the details and the entire project expect for the missing recommendations section. we need 2 pages double spaced for that part please. Google Cloud Industry and Company Analysis
Table of Contents
Executive Summary
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I. Introduction
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II. Industry
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III. Competition
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IV. Company
Value Chain/ Analysis Resource Based view
14
SWOT Analysis
15
Company Strategy
16
Implications
V. Recommendations
Works Cited
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Executive Summary
The three key components of Google Cloud are: infrastructure as a service, digital transformation
platform, and industry solutions.
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I.
Introduction
Google Cloud is a mixture of both Google Cloud Platform and G suite. It is essentially a public
cloud-based machine whose services are delivered to customers on an as-you-go basis, by way of service
components. Google Cloud was launched on April 7, 2008 by Google. As mentioned by Thomas Kurian,
the CEO of Google Cloud, “we give you this platform to paint a new vision for your company…and to
transform the way you serve customers in every industry” (CRN). Google Cloud’s mission is “to enable
organizations around the world to transform their business using digital technology and to do so by
offering the best infrastructure, a digital transformation platform and industry-specific solutions to help
you transform your organization as well as to infuse you with our expertise and our culture to help you
create the magic” (CRN). Google’s vision is “to organize the world’s information and make it universally
accessible and useful” (Google).
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II.
Industry
Industry and Market Participants
Traditionally, people will use their computer and then use either a physical hard drive or USB or
servers to store information. There are many problems that can go wrong with these physical storage
systems as it could be easily stolen or destroyed. Result of these incidents can lead to losing important
documentations forever. Due to the advancement of technology, Cloud Computing is the alternative for
hard drives. Cloud computing is a virtual system that is made by programs and software engineers
specialized in informational technology. In order to do so, these programs need computers to produce
these codes and the internet as the location to which documents and files will be stored. Nearly every
device that we use everyday such as smartphones and computers, have access to cloud computing. This
convenience has made the industry’s target market directly focusing on people of all age groups and
demographics who use a smartphone or computer. For regular consumers, they can store their personal
documents or photos and as for companies, they are able to upload and safely keep their private
information. The risk of this industry is the involvement of hackers who can tamper with the coding and
get private information. Currently, the United States has no laws or regulations regarding internet privacy
nevertheless, federal law such as Electronic Communications Privacy Act can relate towards online issues
(“Internet Privacy Laws”).
The cloud computing industry is an industry that many would presume started in the mid 2000s as
that was when the large companies such as Google and Amazon started mentioning the idea, however, it
has shown that the concept was first initiated back in 1997 by a now defunct company, NetCentric
(Regalado 2020). Since the increase in traction of the industry by major competitors, it is said to be
valued at $10.9 million dollars in the United States in 2017 (“MarketLine Industry Profile: Cloud
Computing in the United States.”, 9). The industry is divided up into 3 segments with Platform as a
service (Paas) having 22.8% of the market, Software as a service (Saas) having 57.1% of the market, and
Infrastructure as a service (Iaas) taking up the remaining 20.1% (10). The major competitors within the
industry include Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Salesforce, and IBM
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Cloud. The top 3 companies in 2019 were AWS dominated the market with 39% followed by Microsoft
Azure at 19% and Google Cloud at 9% of the market (“Top 6 cloud service providers who’ll dominate the
cloud war in 2020”).
The Five-Forces Model
In this sections, we will analyse the Cloud Computing industry according to the lens of:
Threat of new entrants
The cloud computing industry is a new industry that has attracted many because of its large range
of target markets. This industry is prone to attracting more startups as it requires very little capital to start.
The main components of a cloud computing provider is the product which does not require physical
production. Therefore, there is not much capital expenditure involved except for the internet, the right
programer, and a computer. There are multiple startups and small companies that offer different and
refreshing innovations in cloud computing. This could be an appealing factor for many companies and
potential users as new features will be a better fit for those users. New entrants that are smaller in scale
have a disadvantage because users are more attracted towards large companies such as Google, Amazon
or Microsoft. Large scale existing companies have an advantage of a good reputation among existing
users. As the industry is divided into IaaS, PaaS, and SaaS, the larger companies in the industry often
have a presence in IaaS, resulting in less competition in the IaaS portion of the market (“MarketLine
Industry Profile: Cloud Computing in the United States.”, 17). Often when a company is set to use a cloud
computing service, the switching cost is quite low due to regular subscriptions. The industry does not
have many laws or regulations that limit the creativity of the product, however, it is expected to change in
the future as many companies are facing more and more privacy issues. To summarize, the threat of new
entrants is moderat because although users tend to gravitate towards large companies, it is not difficult to
obtain the minimum required capital to start in the industry and as long as there is a groundbreaking
appeal towards new entrants, the switching cost is fairly low.
Bargaining Power of Suppliers
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Although there is an abundance of recruiters for cloud computing architects and technology
development, there is a shortage of qualified applicants for these high demands. In 2019, the United
States alone has 918,000 information technology job openings that were unfilled (Liu). In cloud
computing, there are many layers and complications in forming the working and efficient system. The
search for talent for this industry is scarce and once qualified applicants are available, the larger
companies are bound to poach talent from unknown smaller start ups. Therefore, there are very few
suppliers in the industry and the majority of the IaaS users remain loyal to their suppliers as the prices are
relatively low. Additionally, as technology is advancing at a very quick rate, the suppliers will be able to
forward integrate more by providing softwares that can link powerful computers with cloud services. This
will result in better services and analytic techniques. An example of such development is Microsoft
Azure’s new development of predictive analytics services called, “Azure Machine Learning” that was
released in 2015 (Casalboni). Thus, the bargaining power of suppliers is relatively high.
Bargaining Power of Buyers
Due to the trend of switching to cloud computing, there are a large variety of customers ranging
from regular people who need space to store their documents to large companies that require more
storage. The majority of the industry has adapted to a subscription based pricing according to the data
storage used. Therefore, there is a very low switching cost for customers that only require a small amount
of storage needed. There are rising new innovations within the industry, however, nearly every supplier
provides the same quality and options of services. This lets the customers have a higher influence on the
demand in pricing. Buyers do need a sense of security therefore, they are more likely to choose large
companies. Full backwards integration is a possibility as there is a high chance of security compromises
where in-house data and storage can solve. Overall, the buyer’s power is high.
Threat of Substitute product or services
Cloud computing industry’s main competitor is the traditional IT system. As mentioned above,
these systems provide customers with more security compared to cloud computing. The cloud computing
companies will not have access to their data and the likelihood of hackers are lower in the traditional
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system. Cloud computing is at an advantage on the premise that it does not require companies to update
their hardwares or servers, cooling equipment which is considerably costly (“MarketLine Industry Profile:
Cloud Computing in the United States.”, 19). The subscription basis allows companies to quickly expand
their storage without having to invest in too much capital. Currently, there is no news of any new
breakthroughs that can pose a threat to cloud computing yet. In conclusion, the threat of substitutes is
low.
Rivalry among existing competitors
As mentioned above, the industry is largely dominated by large companies. AWS has taken the
majority of the market with 39% market share (“Top 6 cloud service providers who’ll dominate the cloud
war in 2020”). “[…] limiting e-commerce pioneers to selling books […] AWS blossomed into an industryshifting technology that lets companies rent computer power and offers tools to businesses and other
organizations over the internet”(Swartz). Although AWS was the first mover, other companies such as
Google Cloud, and IBM are quickly following with competitive prices and relatively the same services.
Technology advancements have made data storage an important factor for users therefore, the
perishability of the product and service is very low. Often small companies go unnoticed by customers
because of the questionable reputations. To sum up, rivalry among existing competitors is strong.
Driving Forces
The cloud computing industry has a bright future. Threat of new entrants is quite low as the
majority of the population from any demographic or psychographic tends to gravitate towards large
companies with good reputations. Currently, the industry does not have laws that are bound to limit a
company’s creativity and because of the risk of technological advancements from hacking privacy data,
the company will likely face more rules and regulations. In doing so, there are lower new entrants as it
will be hard to comply with new regulations but larger companies have the capital to adapt to these
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changes. Bargaining Power of Suppliers can continue to grow as they can offer new features to the buyers
and therefore obtain loyalty by the majority of the population. As the industry appeals to every age group
and is slowly becoming part of their lifestyle in the social environment, suppliers have more powers over
buyers. Bargaining Power of Buyers is moderate because the likelihood of better offers from different
countries in the globe with lower prices due to exchange rates can force suppliers to meet buyer demands.
However, possible new regulatory laws surrounding the industry might pose a threat to users in the
United States to go to providers abroad. Users can also use the traditional alternatives instead of cloud
computing such as servers and harddrives as well. Threat of Substitute products or services is quite high
as new technology develops at such a fast rate, the potential of new ways to storing data can replace cloud
computing all together. Not to mention the likelihood of new policies or agreements which poses a threat
for users to stop using cloud computing due to privacy risks. Rivalry among existing competitors will
continue to become a huge part of the industry as larger companies such as Microsoft Azure are playing
catch up with amazon by lowering their prices to compete with such a huge competitor such as AWS
(“Cost Saving – SQL Savers and Window Saver: Microsoft Azure”).
Implications
After analyzing the industry using the five-forces model and the driving forces, it is clear that the
industry is still attracting a lot of companies because it does not cost much to start however, there is a
large new entrant barrier as customers tend to rely on famous companies more. Technology is ever
advancing and every company is doing very well in keeping up with new advancements with lower costs
to attract customers. Due to its main purpose of storing data there is a limitless target market that the
industry can tap into. The future of the cloud computing industry continues to go strong as replacements
for it is costly and being able to access data anywhere is the trend.
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III.
Competition
Amazon AWS
Amazon AWS is Google Cloud’s biggest competitor. Amazon is one of the largest companies
today and offers an assortment of products and services like AWS, which is a cloud-focused service
provider. Amazon’s web services, AWS, was the first to the cloud IaaS market in 2006 and the market
leader who is “the world’s most comprehensive and broadly adopted cloud platform, offering over 175
fully-featured services from data centers globally” (Vlautin). Compared to Google Cloud which didn’t
enter the market with an aPaaS until 2008 and IaaS until 2012 with general availability in December of
2013, AWS has the most reliable track record of customer success and the most valuable partner
ecosystem, resulting in a broader range of customer profiles because of its advantage of being the fist in
the market.
With AWS’s 39% of the market share, it offers the widest variety of services like compute,
storage, and databases, to emerging technologies like machine learning and artificial intelligence, data
lakes and analytics, and the Internet of Things. AWS accounts are integrated IaaS+PaaS and include the
use of Amazon EC2 (compute), Amazon S3 (storage), and Amazon DynamoDB (databases) with 12
months of free tier access (Vlautin). This provider is most commonly chosen for strategic, organizationwide adoption, which results in enterprises making more substantial annual financial commitments and
deploying more mission-critical workloads on AWS than with any other hyper-scale provider (Bala).
However, Google Cloud appeals to buyers associated with big data and other analytics applications,
machine learning projects, cloud-native applications, or other applications optimized for cloud-native
operations. After the trial, AWS offers users a pay-as-you-go approach where the user pays only for the
individual services they need and only pay as long as they use them, without requiring long-term
contracts or complicated licensing. In contrast, GCP only has $300 of free credit that can only be used
within the 12 first months of signing up and then uses pay-as-you-go. Due to the maturity of the platform
and the quality of services, AWS has the largest and most dynamic community, with millions of active
users and tens of thousands of partners globally. They have 70 available zones within 22 geographic
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regions around the world, with an announcement of 16 more available zones and five more AWS regions.
Google Cloud has 22 available cloud regions and 67 zones, so they are right behind AMS’s current
availability.
Microsoft Azure
Microsoft is the second most significant competitor of Google Cloud, right under Amazon AWS.
Microsoft is a substantial and diversified technology vendor that is increasingly focused on delivering its
software capabilities via cloud service through Azure Virtual Machines, which launched in 2012 with
general availability in April 2013 (7 months before Google Cloud Platform). Just like Amazon and
Google, Microsoft provides a platform integrated into IaaS and PaaS for building, testing, deploying, and
managing applications and services, but through Microsoft-managed data centers. Azure appeals to
customers who “extend their infrastructure-oriented Microsoft relationship and investment in Microsoft
technologies and to integrate with Microsoft’s application development tools and technologies, or are
interested in integrated specialized PaaS capabilities, such as the Azure Data Lake, Azure Machine
Learning or the Azure IoT solution accelerators” (Bala). With 19% of the market share, Azure attracts
enterprises that are strategically committed to Microsoft technology.
Azure prides themself on low prices and also provides 12 months of popular free services, $200
of free credit for the first month, and 25+ services that are always free, more free trials to help build
customers enterprises than AWS and GCP. They provide pay-as-you-go pricing once the tests have ended
like AWS, but tend to be five times cheaper than ASW and if not, they will match the price; products like
Windows virtual machines are up to 71% less expensive than AWS EC2 (Msmimart). Google Cloud only
tends to be 21% cheaper in storage than AWS (GCP Pricing). Lastly, Azure covers 52 regions worldwide
with a plan to add five more with the availability of 3 zones, so microsoft has more regions than both
AWS and GCP put together, but has dramatically less zones.
Other Companies
AWS, Azure, and GCP are the leaders of Cloud Computing, but there is also (1)Alibaba Cloud,
(2)Oracle,
and (3)IBM that are in the industry. (1)Alibaba Cloud, also known as Aliyun in Chinese, is a
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cloud-focused service provider with headquarters in China, founded in 2009, to provide platform services
to Alibaba Group’s e-commerce businesses. It is dominating in China and is the current market share
leader for cloud IaaS (42%) and performs particularly well with Chinese digital businesses and Chinese
public-sector entities (Bala). In China, Alibaba offers private cloud infrastructure options for Chinese
companies that want a hybrid cloud model. On the other hand, (2)Oracle is a large, diversified technology
company with a range of cloud-related products and services. In November 2016, it launched Oracle
Cloud Infrastructure (OCI, formerly Oracle Bare Metal Cloud Services). OCI will appeal to customers
with mainly Oracle workloads and, especially, those with performance needs that are well suited to baremetal servers, and those that do not need more than very basic cloud IaaS capabilities (Bala). (3)IBM is
also a large, diversified technology company with a range of cloud-related products and services. The
IBM Cloud offering has been built on IBM’s July 2013 acquisition of SoftLayer and its previous Bluemix
offering. IBM appeals to its large base, existing customers who have a strong preference to purchase most
of their technology from IBM (Bala). These companies fall behind GCP in relations to market share, but
they seem to find their range of costumes based on dominated regions or customer loyalty to their brand
and products.
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Implications
After analysing Google Cloud’s top two competitors, there are some improvements that GCP can
implement in their database. GCP’s prices may be lower than AWS, but they can still improve their prices
and promotions compared to Azure prices. Most customers of Cloud Computing tend to be loyal
customers that are already using the company’s technology products like Microsoft, Oracle and IBM. The
fact AWS was the first to penetrate the Cloud Computing industry and Amazon’s overall great customer
service has given them a huge head start to gaining and keeping their customers. As a result of AWS
dominating the market, and Microsoft Azure following right behind, it comes down to GCP creating a
more loyalty based program with the best prices in the market to attract more customers.
IIII. Company
Value Analysis/Resource-Based
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Cloud computing remains one of the most competitive areas of investment for leading tech
companies. Google Cloud has been one of the leading cloud computing infrastructures running different
artificial intelligence. The success of the Google Cloud in the cloud computing field has involved the

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