27 July 2021: During Google Cloud Platform’s (GCP) analyst update, the vendor unveiled details regarding its Australian expansion with a new Melbourne data centre and new management for the ANZ region.
Why it’s Important
The new data centre is more an indication of overall Cloud growth in Australia, as IBRS has reported in the past. It is less a turning point in Google’s strategy, and more of a necessary response to market trends. It should be noted that a large set of GCP services will be available from the Melbourne zone, but not all. Others will be added ‘based on market demands’. This is a strategy that has been adopted by all three hyper-scale Cloud vendors, and is a clear indication of how Cloud usage is expanding in Australia: from core infrastructure services (especially storage, compute, containers and analytics) to more nuanced services, such as AI.
During the briefing, Google highlighted its private ANZ wide data network as a key differentiating factor. There is merit to this claim, as network infrastructure in Australia remains a thorny issue for Cloud clients outside the major States, such as Perth and Darwin, Adelaide, etc.
More telling was what was not elaborated upon during the briefing. In the past, Google has focused on its capabilities in AI as a key differentiator in the market. While Google clearly has strong credentials in AI, the reality is that most Australian organisations are not investing in AI directly, but rather obtaining it as part of other solutions.
For example, AI is found in capabilities of CRM products Salesforce (Einstein) and Zoho (Zia), in low-code products from Appian and Microsoft’s Power Platform and so on.
Instead, Google championed its partner program and its support credentials. Google knows channel partners are essential to competing against AWS and Microsoft. It also recognises that skills are in short supply, so is investing in training and support programs.
In reality, Google’s strongest competitive weapon is an age-old one: value for money. When evaluating like-for-like core compute and storage services, GCP is more economical than its two top rivals.
- Cloud infrastructure teams
Most organisations will end up with a multi-Cloud environment, though with a preference for a ‘primary’ platform. Many Cloud migration strategies IBRS reviews are scoped in such a way to limit the choice of deployment to Azure and/or AWS. Given the strengths of these two Clouds, this makes sense. Oracle’s Cloud platform is also appealing to Oracle customers looking for an ‘easy’ migration of their core services.
Far fewer Australian organisations are formally considering GCP as a viable alternative for running core workloads, or even leveraging it for failover/parallel workloads. This is a lost opportunity. While IBRS is not recommending GCP, it considers that the vendor is under-represented in shortlists and as a result, opportunities for Cloud cost optimisation and contestability in multi-Cloud environments suffer.
Related IBRS Advisory
- IBRSiQ: Google Cloud - Are Their AI Offerings a Point of Difference From Other Vendors?
- Vendor Lock-in Using Cloud: Golden Handcuffs or Ball and Chain?
- Options for Machine Learning-as-a-Service: The Big Four AIs Battle it Out
- How to get on top of Cloud billing
- Why Cloud Certified People Are in Hot Demand
- VENDORiQ: Data Replication Goes Serverless with Google Datastream