Google Cloud Signs Deal With SADA Systems in Enterprise Push -- Update
February 26 2020 - 4:17PM
Dow Jones News
By Agam Shah
Alphabet Inc.'s cloud unit has entered into a multiyear deal
with service provider SADA Systems Inc. as it continues its efforts
to better engage with enterprise customers.
As part of the deal, Los Angeles-based SADA will commit to
resell $500 million in Google Cloud services in the next three
years. Services include installation and consulting of call center,
hybrid cloud and analytics applications on Google Cloud.
Tuesday's announcement comes as Google Cloud continues its quest
to close the gap in the cloud market with leaders Amazon.com Inc.
and Microsoft Corp., in part by changing how it works with
enterprise customers.
Under the leadership of Thomas Kurian, an Oracle Corp. veteran,
Google Cloud over the past year has beefed up its sales team,
including hiring executives with experience selling to enterprise
customers. Mr. Kurian has helped shift direction toward the
specific needs of enterprise customers, focusing efforts on six
industries, including financial services and health care.
"SADA will bring even more organizations onto Google Cloud and
we'll continue to provide resources and support to help them do
so," said Carolee Gearhart, vice president of world-wide channel
sales at Google Cloud.
The deal with SADA represents one step toward gaining market
share, said Deepak Mohan, research director for cloud
infrastructure services at International Data Corp.
"From Google's perspective, it is especially important because
when you think about Amazon and Microsoft, they have partner
networks and a lot of hooks into the enterprise space already.
[Amazon Web Services] has the benefit of having been in the market
for such a long time," Mr. Mohan said.
Google has desirable technology, but needs service providers to
improve conversations with customers, said David Smith, an analyst
at research and consulting firm Gartner Inc.
"Google, like a lot of companies that are very tech heavy --
they are into building the technology much more so than the
customization and the professional services that go along with it,"
Mr. Smith said.
One enterprise offering Google Cloud could boost from the deal
is Anthos, which is cloud technology that lets customers use
applications across public and private cloud services. SADA has
introduced packages that include installation, workshops and
consulting for Anthos environments to enterprise customers.
The cloud generated 5.5% of Alphabet sales last year, or $8.9
billion, up from $4.1 billion, or 3.7% of total sales, two years
earlier. Alphabet began separately reporting cloud sales in the
last quarter.
SADA, founded in 2010, is a Google Cloud service provider with
services that include migrating and managing enterprise
infrastructure to Google cloud.
"We started the year around 200 employees," said SADA Chief
Executive Tony Safoian. "We literally have to hire 90 to 95 people
in this calendar year to be able to support the market demand all
around the U.S. and Canada."
Write to Agam Shah at agam.shah@wsj.com
(END) Dow Jones Newswires
February 26, 2020 16:02 ET (21:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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