To nurture its cloud ambitions, Google should consider spending 9 billion USD acquiring Nutanix

Nutanix could be an ideal acquisition for Google to strengthen its position in the cloud sector.

In recent years, cloud computing has been one of the focuses of Alphabet, the parent company of Google. The result has been promising with the company ranking top 3 biggest players in this sector.

In order to strengthen and improve its position in the cloud computing scene, specialists on Forbes believe that Google should purchase Nutanix. According to Trefis team, there are many reasons why the technology giant should make this acquisition.

The key lies in the hybrid cloud

Most of the big public cloud providers have created committed relationships with their leading hybrid cloud companies or have bought them. While Amazon and Microsoft have partnered with VMware for AWS and Azure respectively, IBM had purchased Red Hat to pursue its cloud ambitions

In addition, Microsoft has maintained relationships with IBM and Red Hat to develop Azure. Microsoft also recently partnered up with Oracle to create interchangeable operations between the 2 companies, since the latter along with its database has established a strong on-premise presence.

As for Google, the company launched its own hybrid cloud platform, known as Anthos, in April. However, the technology giant is in need of an established provider in the data center segment in order to reach out to private clouds.

Google does not publish numbers regarding its cloud segment, but the management has emphasized that it is a focus of its investment plan. The cloud business just welcomed a new CEO and former Oracle executive, Thomas Kurian.

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Nutanix would be compatible with Google’s hybrid cloud strategy, as this company is leading in the hyper converged infrastructure which refers to “single appliance modules that enable building virtualization in data centers”, according to Trefis team.

Human resource in place

The foundation for Trefis team’s belief is that Sunil Potti, Chief Product Officer of Nutanix, is working for Google, while Brian Stevens, VP, and CTO of Google Cloud, is a member of Nutanix’s board.

If happening, the acquisition will boost Nutanix whose sales has slowed down because of salesforce-related problems and a transition to a subscription model. Despite more promising results than estimates, Nutanix’s management said that their company could improve much more.

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Before the appointment of Thomas Kurian, the cloud segment of Google was struggling to sell to enterprises even though it possesses superior technology. If Google acquires Nutanix, the combined impact of both companies’ advanced hybrid technology and experienced salesforce could result in better sales of the cloud services for the 2 companies.

By: Joe Cook