Alphabet’s (NASDAQ:GOOGL) division Google is leaving no stone unturned to strengthen presence in the emerging cloud market. The company is set to roll out a new storage option called Cloud Filestore, which will initially be launched at beta stage.
Filestore offers managed file storage services and features network attached storage (“NAS”) facility. This will be of major help to the developers who require filesystem interface and a shared filesystem for data to run their applications.
The company aims at aiding the application developers in managing workloads efficiently with Filestore on its cloud platform. The users can set their filesystem for a particular workload by selecting IOPS and the storage capacity required.
The company’s key offerings will become better with the latest innovation, which is likely to boost the adoption of Google Cloud, driving the top line.
Coming to the price performance, shares of Alphabet have returned 8% on a year-to-date basis against the industry’s loss of 2.6%.
Clientele to Improve
The company’s expanding portfolio of services will continue to support it in gaining momentum in the market by aiding clientele growth.
Firestorage will be beneficial for the companies who are involved in graphic designing, video and image editing, web development and other media workflows utilizing files that generate huge amount of unstructured content and data.
Further, its sole-tenant nodes are useful in cases where companies have to follow strict compliance and regulatory restrictions.
Consequently, we note that both the services are likely to gain traction among the types of companies mentioned above.
Google’s latest client acquisition includes the likes of Shopify (NYSE:SHOP) and CSRA, a provider of IT services to Federal government, courtesy its innovative cloud services and solutions. Moreover, Apple‘s (NASDAQ:AAPL) selection of Google cloud for the storage of iCloud services data has also strengthened the latter’s position in the cloud market.
Further, ongoing strategic partnerships with HubSpot (NYSE:HUBS), Box and Nutanix will continue to keep the company on growth track.
Google’s latest move is in sync with its strong efforts toward innovation and expansion of its services portfolio. Moreover, its storage option will expand with the addition of Filestore.
We believe new improved services will help the company in reaping benefits from emerging cloud market which holds great potential in the long run.
Per the data from MarketsandMarkets, the global cloud storage market is expected grow at a CAGR of 23.7% between 2017 and 2022 and to reach $88.9 billion by 2022 from $30.7 billion in 2017.
Recently, Google unveiled the Beta availability of sole-tenant nodes on Google Compute Engine, which will aid in non-sharing of servers with other customers while launching a virtual machine (“VM”).
Further, the company’s recent buyout of Cask Data enables it to improve the productivity of cloud customers by offering data processing services.
Thus, Google’s strong endeavors toward enhancing services offering will continue to boost its market share by improving its cilentele.
Currently, Alphabet carries a Zacks Rank #3 (Hold).
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