Here is the reason for Google’s acquisition of WIZ for $ 32 billion as “Multicloud”

Big news on Tuesday that Google gets Startup Wiz for a standard $ 32 billion that comes with a very large qualification. Google says it will put Wiz as “Multicloud”, which means Wiz will not only go Google.

The fact is that Google has no choice but to do this, and a closer look at the reasons behind the decision also highlights the weak Google points in the coming months.

Keeping customers

Wiz brings a huge customer list to Google. As of today, the startup has already reached an annual revenue rate of $ 700 million. Before the news erupted on Tuesday, the right path was to grow to one billion dollars.

“Before the outbreak of the news” is the logical phrase here. Google and Wiz are certainly hoped that the acquisition creates an interesting new path from customers and revenues, but first of all, both will need to make sure that existing customers keep shopping for another safety presenter.

Many of these customers already use a mixed cloud arrangement and may not use Google Cloud at all. One of the main reasons for some of them chose Wiz in the first place is its ability to support multiple cloud platforms.

If Google reduces this ability, it risk revitalizes these users.

For this reason, the CEO of Wiz Assaf Rappaptort and other senior leaders contacted customers in the hours before the deal, and reassured them as just a work as usual.

Regulating anti -monopoly

When the news broke out last summer, Alphabet/Google was looking forward to obtaining Wiz, and soon was the speculation about the organizational challenges of paying such a big deal. Google has undergone an intensive anti -monopoly audit for years, especially its dominance in areas such as search, mobile operating systems, and advertising.

The organizational climate has been transformed since then. Under the leadership of President Trump, the United States has not heard a major anti -monopoly issue, and there are mixed opinions on how his administration dealt with large technology. Some believe that large technology companies will still face road barriers; Others believe that the large deal window is open again.

One of the sources said: “Google feels that she is able to think about large integration and purchases again.” “Do they think they have the Trump administration alongside it?”

Meanwhile, in smaller markets but still influencing the United Kingdom, the organizers recently took a more convenient position on large technology as part of a broader batch to indicate that “the UK is open to work.” The so -called superfug of the superiority may see this as a chance to get out of the shadows a little more than that.

Even if the organizational climate remains difficult for mergers and acquisition of large technology, the “Multicloud” mode of Google can be useful. Cloud services and cybersecurity are not categorically room where Google dominates at the present time, so this deal may not only raise anti -monopoly warning bells.

If the organizers We are Auditing in the comprehensive Google dominance can help, while emphasizing Wiz’s ability to work through various cloud platforms, Google’s argument that supports competition.

Google Cloud can only catch AWS and Azure

The last reason that Google had to adopt a simple Multicloud model: Many customers do not do and will not use Google Cloud. As of Q4 2024, Statista Data show that AWS has a 30 % stake in the global cloud market, with AZURE in second place by 21 %. Google Cloud paths are 12 % behind them.

Why Google is backward so far? Some say this because AWS got a previous start in this field. Others say that the Foundation’s dominance of Microsoft and the strong ecosystem – including its Openai’s partner – gave it an advantage. Google lacks both bidders.

Two years ago, people asked whether Google could close the gap, since its cloud shows are comparable to AWS and Azure.

“Google Cloud has always been mystery when it comes to its third position in the stake in the cloud infrastructure market,” said former TC writer Ron Miller TC today. “They run the largest cloud applications in the world, however they have a problem in translating this into products for institutional customers.”

He believes this changed under the CEO of Google Cloud Thomas Kurian. “He has more credibility with institution agents,” says Miller. “They have been growing quickly over the past two years and have very big work, but they are still behind the Amazon and Microsoft in terms of revenue.”

During the investor invitation on Tuesday, Corian confirmed that Google followed her multiple capabilities, saying: “Multicloud is something our customers want.

But Corian also believes that artificial intelligence may change the game.

Korean said that the structures of artificial intelligence may cause large companies to be assembled from multiple places in a central cloud provider. If this happens, black multiple protection may become less important, but it will be the safety of the central data storage memory.

Until then, Multicloud is the stadium “helping customers to identify, protect and defend electronic threats through all major clouds and even in local systems,” Corian said.

Now we’ll see whether organizers and ultimate users are buying it.