Alphabet Inc, the Parent company of Google, announced yet another acquisition on Wednesday this week. Google Cloud bought Cornerstone Technology; the company, though, did not reveal the amount it paid for the same.
Google Cloud Acquires Cornerstone Technology to Stay Ahead in Cloud Market
Google said in a blog post that by bringing in Cornerstone, the customers would be able to shift the workload from their mainframe systems to Google Cloud. Google further added that this would enhance the mainframe setup of Cornerstone. It is a kind of “application modernization is at the heart of the Cornerstone toolset.
Transition to Cloud-Native Format Possible
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As per Google, the existing mainframe programs will be transitioned into the cloud-native format. The Class A and Google Shares soared up to .7percent in the trading post-acquisition announcement.
The Netherlands based; Cornerstone Technologies is Mainframe Centric, which will help Google Cloud transition its customers from Mainframes to cloud platforms. The acquisition is seen as another step by Google to stay ahead in the Cloud Computing markets giving tougher competition to Amazon’s AWS and Microsoft’s Azure. The terms and conditions of the Deal were not disclosed.
Google Blog Post Detailed the Benefits
Google said in a statement,
“Cornerstone brings experience and innovative solutions to our portfolio of products and services that help customers modernize their infrastructure and applications.”
The Cornerstone to Provide Streamlined Transition to Customers
The Director of Transformational Practice at Google Cloud, Howard Wealetalked about the acquisition. He said, “Their capabilities will form the cornerstone of our mainframe-to-Google Cloud Platform solutions, and customers can take advantage of these new capabilities now through our professional services organization and our partner network.”
John Jester talks about the acquisition
John Jester, the Vice President of Google Cloud Customer Experience, said that “This is one more example of how Google Cloud is helping enterprise customers modernize their infrastructure and applications as they transition to the cloud, ” He further mentioned,
“We’ve been making great strides to serve better enterprise customers, including introducing Premium Support, better aligning our Customer Success organization, simplifying our commercial contracting process to make it easier to do business with Google Cloud, and expanding our partner relationships.”
Acquisition to Strengthen Google’s Prospects
There is a stagnation level in the core advertising business for Alphabet. Thus the firm is investing in cloud services to keep its business growth intact.
Market Analysts look up to the acquisition strategy of Google as the company is investing heavily in the cloud market to gain a stronger hold of the business. The cloud market is expected to ground by the rate of 25 percent each year through 2021.