Google and Apigee are to merge to compete in the cloud computing field. Google, owned by Alphabet Inc. is to acquire Apigee Corp is a software developer that helps business transition to the cloud. The deal is valued at $625 million. Alphabet Inc. was founded in October 2015 by Larry Page and Sergey Brin, with Page as CEO and Brin as president.
This is Alphabet’s latest move to acquire a larger share of the cloud computing business – the lucrative growing off-site data storage system. Apigee assists in enabling a business’s digital services tie up with apps that are used by partners and customers. It is a critical service that helps businesses transition to the cloud. Apigee is a world leader in application programming interface (API) technology.
The cloud enables businesses to access software applications on a subscription basis rather than purchase it. It also allows large file storage, leaving business servers free for their own files. It is becoming increasingly more popular. Cloud computing is term to describe using the cloud for data processing in addition to storage.
The cloud can be used to store and process data rather than it being done on the client’s own computer system. The client has less need for large storage capacity or ultra-fast processors on its own computers. Apigee’s specialty is APIs. Each time a business takes an order or places one with a supplier, an API is involved.
The deal comes the day after Google and Box Inc., the online file storage company, agreed to partner. This would enable Box’s clients to integrate with the Google Docs suite of tools. This suit includes spreadsheets, word processing and various productivity applications.
Google is offering Apigee shareholders $17.40 per share. This is 6.5% over the share price at close Wednesday. On Nasdaq trading Thursday, the company’s shares were slightly higher than this at $17.43. Apigee went public in April 2015 at $17 flat.
Google and Apigee make a good match. The corporate cloud business is booming, and Google wants its share in competition with Amazon, Microsoft and IBM. Microsoft Azure and Amazon Web services have stolen a lead on Google in the lucrative cloud market. Google, via Alphabet Inc, is fighting back.
Google is never one to ignore competition, and is doing what it can to redress this situation. Apigee has several high-profile clients and is a good partner to have on your side for this technology. Google and Apigee have both taken a huge forward step in their bid to dominate the internet cloud market.
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