Microsoft License Mobility Available for Google Cloud
Search giant Google Inc. (GOOGL) is now offering Microsoft (MSFT) License Mobility for its Cloud Platform, which will enable Windows users to move their workloads to the Google Cloud Platform. The solution allows Microsoft users with support contracts to run Windows apps on third-party cloud services for free.
As a result of the license mobility arrangement, Google will now be able to support users wanting to migrate their Microsoft server Relevant Products/Services application software licenses, such as SQL Server, SharePoint and Exchange Server to its cloud platform without paying additional fees to Microsoft. The feature is also applicable for customers holding a perpetual license.
Along with this, Google has also expanded Windows support on the Google Cloud Platform, providing support for Windows Server 2008 R2 Datacenter Edition and making the Chrome RDP app available for free.
Amazon (AMZN) already allows its customers to run a number of Windows Server variants (including Server 2012 R2), and various Microsoft enterprise software applications on its cloud platform through Microsoft License Mobility.
Google needs to buck up as competition in the cloud computing market is intense, particularly with players like Amazon already ruling and Microsoft determined to build a position in the fast-growing segment.
This move is in line with Google’s efforts to make its cloud platform a viable alternative especially for corporate Relevant Products/Services users. It is particularly important to encourage companies that have thus far largely relied on Windows software to shift their workloads to Google’s cloud platform. Whether this will also encourage them to use Google productivity tools will depend on the cost and convenience of using these tools.
For Microsoft, this gives its licensees more latitude in choosing the services they want thus increasing their appeal. It is right in line with CEO Nadella’s cloud-first mobile-first strategy.
Google has been doing a lot to target enterprise customers and boost its cloud computing revenue. In November, it signed a partnership deal with the global interconnection and data center company, Equinix, Inc. (EQIX) in a bid to boost Google Cloud. The partnership will enable Google to expand the reach of its cloud platform and provide private connectivity to corporate customers globally in an uncongested and cost-effective manner. It also declared price cuts for its cloud-based computing services to attract enterprise customers.
Google shares currently hold a Zacks Rank #4 (Sell), while Microsoft carries a Zacks Rank # 3 (Hold).
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