Hostile Relations with China Affects Google’s Cloud Market

Published Date : Aug 22, 2017

Google's hostile relation with China is creating has resulted in its decision not to bring public cloud to China, while the cloud business is expanding everywhere else in the world. Google has also opened data centers in four countries outside of the U.S. and another five are lined up to be completed by 2019, in its bid to compete with the webs services of Amazon. However, once again, China will not be on the list. China is the world’s second largest economy and thus, not including the country for cloud business or any other for that matter, is causing a blow to Google’s business, while AWS and Microsoft are rapidly expanding and thriving in China.

Google Stands at Number Four in Cloud Business

Without its physical presence in China, Google has a major disadvantage. The company is therefore striving to serve other emerging businesses that are adopting cloud for storage, computing, and other features and applications. The closest data centers to China are in Singapore and Taiwan. Google is today standing at the fourth position in the global cloud infrastructure market. AWS, Azure, and IBM comprise the top three companies in the cloud business. With such a small market, Google has a long way to go. It is opening cloud locations in countries such as Brazil and India.