Market Research News

Google Cloud Serious Contender for PayPal Data Storage Business

  • August 31, 2016
  • By Pete Nisbet
  • 0

The Google Cloud development has resulted in it being a serious contender for PayPal’s data storage business. still leads Google in cloud computing technology, but Google is favorite ahead of Amazon to land PayPal.

However, the final decision has yet to be made and PayPal is still evaluating other cloud providers. Google Cloud may be front-runner now, but PayPal is unlikely to make a decision to move its technology infrastructure before the end of the year due to November and December being the busiest period of the year for online purchasing activity.

Google Cloud

Cloud Computing Dominated by Amazon

The cloud computing market has been dominated by Amazon Web Services and its huge worldwide data centers. The continuing provision of new software tools has enabled large businesses and government departments to maintain their computing and data storage requirements securely on the cloud. However, Google Coud looks capable of becoming a leader in the cloud market under VMware cofounder Diane Greene’s leadership.

She has been working hard to give Google Cloud a position of near dominance offering good aggressive pricing to pry some leading companies away from their current external data storage providers.  She has plenty cash to use in the battle against Google’s competitors, with $80 billion available at the end of the half year and an annual Capital Expenditure budget of $10 billion for parent company, Alphabet. Google is well placed to start and win a pricing war.

PayPal Likely to Test Google Cloud First

By bagging PayPal, Google would take a significant step towards dominating the entire cloud storage market. PayPal is a well-known name in the online financial services sector. It is currently doing some cloud business with AWS relating to its Braintree and Venmo products. It is unlikely that PayPal critical customer business would be transferred to Google’s cloud for a while. It is more likely to test the Google service with non-critical workloads before considering risking critical customer data.

The more business available, and the higher the prestige of gaining that business, then the harder any fall will be. The next few months are going to be interesting ones and will be keeping a very careful eye on it.

Cost, Speed and Reliability to be Proved First

 The PayPal business would be good for any size of company to bag, not least Google. It is a big-name in the industry and would be good business for any firm to have bagged. However, cost, speed and reliability all have to be proved and any move to AWS, Azure or to the Google cloud would still result in PayPal retaining its own data centers and storage technology. At the end of 2015, PayPal still had 3.5 million sq. feet space including its data center and office facilities on a leased or fully owned basis.

About Pete Nisbet

Pete has been working in the field of website design and content for many years. He has a great interest in technology and current affairs, particularly business affairs. Pete's interests are technology, writing and world affairs and he is widely traveled. Pete also holds an Honors BSc from the University of Edinburgh.