Google Goes For Verticals, Scale In APAC Cloud Push

With the cloud market heating up in Asia-Pacific, Google is looking to win customers by focusing on key verticals and developing services specifically for these sectors. The US tech giant also is looking to further expand its datacentre footprint as well as grow its headcount in the region, where it aims to triple its workforce. 

Google currently operates seven cloud regions in Asia-Pacific, including Singapore, Mumbai, Tokyo, and Sydney, and will be adding Jakarta and Seoul to the list within the next year. Globally, it runs 20 cloud regions. 

It sees Indonesia, Singapore, and India amongst its growth markets in Asia, where there also is a growing community of unicorns and digital natives. And these startups will turn increasingly to the cloud as they scale their business, according to Robert Enslin, Google Cloud's president of global customer operations. 

"We see significant opportunities here," he said in an interview with ZDNet, noting that Google would be tripling its headcount in the region over the next 18 months to tap this growth. Enslin declined to reveal the actual number, but said the vendor's cloud business currently has a team of 25,000 worldwide, including 20,000 engineers. 

Amongst its recent customer wins is Indonesian e-commerce operator, Bukalapak, which has more than 50 million users and processes more than 500,000 transactions a day.

According to Enslin, the Asian online marketplace currently runs its operations entirely on-premise, but had suffered several high-profile service disruptions during peak shopping seasons. Bukalapak opted for Google Cloud following an assessment that included AWS and Alibaba, he said, adding that the vendor's Jakarta cloud region was scheduled to launch in the first half of next year. 

He noted that startups today founded their companies based on technology, whether they were in the games or property market, and recognised the benefits of using technology to drive their business. Cloud enabled them to take their ideas and build companies from the ground up, he added.

Many organisations, including traditional companies, also understood the need to innovate and were keen to run data analytics and machine learning to establish a differentiator for themselves. This had pushed Google to focus on key verticals, including government, health and life sciences, financial services, retail, and manufacturing, and build applications specific to these industries, Enslin said. 

With its competitors such as Amazon Web Services (AWS) touting their wide services portfolio and Alibaba pitching its Asian heritage as their differentiator, he pointed to the need for "quality" in the provision of cloud services and Google's ability to innovate.

"We want to differentiate by utilising our knowledge of embracing mass amounts of information and processing that at a speed and scale that no one else does, and put AI (artificial intelligence) and ML (machine learning) on top of it," he said. "It's [about] building applications sets and building intelligence where it's needed."

He acknowledged that Alibaba and other local cloud players often would be amongst the names of competitors mentioned by potential clients in Asia, or AWS and Microsoft in the US and Europe, but noted that customers, increasingly, would want the ability to run services from multiple cloud providers. 

This, he added, underscored the importance of Google's Anthos platform--unveiled in April--which enabled enterprises to centrally manage their applications on-premise and across multiple cloud environments, including AWS and Microsoft Azure. 

Google in the past month was hit by two major incidents that led to service outages and latency issues for its customers, including one this week that it said was due to physical damage to its fibre network serving its us-east1 data centre in South Carolina, US. A previous service disruption on June 2 was the result of a configuration error that affected several of its platforms including Gmail and YouTube. 

RELATED COVERAGE

Alibaba Cloud touts Asian heritage and focus as competitive advantages

While coy over how the Huawei-US debacle may impact other Chinese technology vendors, Alibaba Cloud executives play up their "in Asia, for Asia" focus and investment in the region as a key competitive advantage over its US competitors, including AWS, Microsoft, and Google.

AWS bets on services portfolio amidst increasing APAC cloud competition

With cloud market players Alibaba and Google ramping up their regional data centre footprint, Amazon Web Services is relying on the "breadth and depth" of its service offerings and platform maturity to maintain its competitive edge.

Microsoft adds Southeast Asia to Azure Availability Zones

The software vendor's cloud customers in Southeast Asia now can tap its Azure Availability Zones in Singapore, giving them access to a region with at least three separate physical data locations.

Alibaba Cloud doubles capacity in Indonesia with second data centre

Chinese cloud vendor opens its second data centre in the ASEAN market 10 months after launching the first, pushing its global coverage to 55 availability zones across 19 regions.

Huawei has big plans for new Singapore cloud region

Chinese tech giant launches new cloud region in Singapore, where it says it is looking to develop into one of its largest outside China and will deliver artificial intelligence capabilities.

RECENT NEWS

Reassessing AI Investments: What The Correction In US Megacap Tech Stocks Signals

The recent correction in US megacap tech stocks, including giants like Nvidia, Tesla, Meta, and Alphabet, has sent rippl... Read more

AI Hype Meets Reality: Assessing The Impact Of Stock Declines On Future Tech Investments

Recent declines in the stock prices of major tech companies such as Nvidia, Tesla, Meta, and Alphabet have highlighted a... Read more

Technology Sector Fuels U.S. Economic Growth In Q2

The technology sector played a pivotal role in accelerating America's economic growth in the second quarter of 2024.The ... Read more

Tech Start-Ups Advised To Guard Against Foreign Investment Risks

The US National Counterintelligence and Security Center (NCSC) has advised American tech start-ups to be wary of foreign... Read more

Global IT Outage Threatens To Cost Insurers Billions

Largest disruption since 2017’s NotPetya malware attack highlights vulnerabilities.A recent global IT outage has cause... Read more

Global IT Outage Disrupts Airlines, Financial Services, And Media Groups

On Friday morning, a major IT outage caused widespread disruption across various sectors, including airlines, financial ... Read more