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CNBC: Google shacks up with Equinix for cloud boost

From CNBC, November 5, 2014

For the 100 billion Internet searches and more than 6 billion hours of YouTube videos streamed monthly, Google is building supersized data centers across the globe. But for certain functions, the company is better off using other people's property.

Equinix, which operates more than 100 data centers in 32 metro areas worldwide, is announcing on Wednesday that Google will be using its facilities to help clients in 15 markets, including New York, Atlanta, Frankfurt, Germany, and Hong Kong, access Google's business applications and cloud infrastructure.

The Google cloud needs all the help it can get. While the Mountain View, California-based company dominates the online advertising market, it's playing catch-up to Amazon Web Services in on-demand cloud computing as it also battles Microsoft's Azure technology.

The three companies are engaged in a brutal price war as they try to lure businesses looking to offload their computing and storage instead of handling it internally. Amazon and Microsoft are already Equinix customers. Now businesses can use any or all of them via Equinix.

"This completes our access to the big three cloud providers," said Equinix Chief Technology Officer Ihab Tarazi. Businesses can "get significantly higher bandwidth for very low economics and be able to completely leverage the cloud."

Google disclosed the deal with Equinix on Tuesday as one of several announcements tied to its cloud platform. The company also introduced Google Container Engine and a partnership with Docker to make it easier to create and manage applications across machines.

It's all part of Google's deeper dive into the world of business software, and it's not cheap. In the third quarter, Google spent $2.4 billion on capital expenditures, largely on data center construction and real estate costs.

"Everybody's moving their infrastructures to the cloud," Google Chief Financial Officer Patrick Pichette said on the earnings call last month. "It is an area where we have fundamentally great assets to contribute to this industry, both in terms of the flexibility, the cost structure, the technology. And that's why we're investing heavily in there."

Google owns and operates 12 data centers in the U.S., Europe and Asia, according to its website. Much of the software that Google as well as Amazon and Facebook have developed to bolster the speed and capacity of servers and databases is being replicated across the technology industry.

But that doesn't mean corporate America is ready to spin all of its most critical data up to the public cloud. Using Equinix, they can plug into the power of Google's infrastructure without relying on it entirely.

Equinix has more than 4,500 customers using its facilities. In April, the Redwood City, California-based company launched a service called Cloud Exchange to provide an added layer of security and enhanced connectivity for businesses that may have previously been reluctant to move applications to the cloud.

InsiderMonkey: Google Inc.'s Diversification Will Be Key to Future Success: Bill George

From InsiderMonkey, November 4, 2014

Google Inc. has been on a diversification drive in the recent past as focus shifts from the core search-business that it has come to be known of, over the years. Former Medtronic CEO, Bill George, during an interview on CNBC, argued that the company is doing the right thing moving into other areas of operations despite increased concerns.

CEO, Larry Page, believes the company is still in its teenage years with a lot to grasp, moving into adulthood in terms of innovating new products. Changes in the company have seen Sundar Pichai being given more responsibilities on Google Inc.’s core products.

“They are investing in a whole lot of things and I think they are doing all the right things. The question is can Larry keep all this things on track, it’s a bottoms-up innovation company, I think they are probably the best innovator in the world today, “said Mr. George.

George believes reorganizing is especially important for such a big company like Google Inc. as one of the ways of keeping employees motivated. While focusing on short term results George argues that companies resort to developing and evolving products but when focusing on the long-term success reorganization of the leadership structure is essential.

Google has in the recent past been diversifying its operations tapping into the healthcare space with iCare as well as showing intention of tapping into the auto industry with the driverless-car technology.

“Google Inc. is going in all directions; they have done a lot of deals in Google Glass getting into iCare and diabetes so they are going in a lot of directions. Can they keep all in track? We will see. I love the bottoms up innovation at Google, “said Mr. George.

The fact that Google has grown to become such a big company in terms of fields of operations is raising concerns as to whether it will be able to sustain its operations with the addition of more sectors. Diversifying into other sectors is key, according to Mr. George as it protects the company from being trapped in one field of operation.

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