This is why Google presented its acquisition of $ 32 billion as “Multicloud”

The big news from Tuesday that Google acquires the Wiz security startup for a record of $ 32 billion is delivered with a very large qualifier. Google says it will position Wiz as a “multicloud” offer, which means that WIZ will not be a shop only on Google.

The reality is that Google had no choice but to do so, and a more in -depth examination of the reasons for the decision also highlights Google’s weaknesses in the coming months.

Loyalty

Wiz brings a massive list of customers to Google. To date, the startup has already reached an annual income rate of $ 700 million. Before the news passed Tuesday, it was on the right track that it reaches $ 1 billion.

“Before the news is announced” is the operating phrase here. Google and Wiz surely hope that the acquisition will create a new interesting funnel of customers and income, but first and foremost, the two will have to ensure that they will prevent existing shopping customers for another security provider.

Many of these customers already use a hybrid cloud arrangement and may not use Google Cloud at all. One of the main reasons why some of them chose WIZ in the first place were its ability to support several cloud platforms.

If Google cuts this capacity, it may alienate these users.

This is why the CEO of the Assaf Rappaport assistant and other senior managers called customers in the hours preceding the agreement, reassuring them that it is just a matter as usual.

Antitrust regulation

When the news announced last summer that Alphabet / Google sought to acquire WIZ, speculation quickly followed the regulatory challenges for the pursuit of such a case. Google has been under an intense antitrust examination for years, in particular for its domination in fields such as research, mobile operating systems and advertising.

The regulatory climate has moved since. The United States under President Trump has not yet heard a major antitrust case, and there are mixed opinions on how the administration will address Big Tech. Some believe that large technological companies will always face roadblocks; Others think that the large pregnant window is open again.

“The fact that Google feels able to contemplate big mergers and acquisitions again seems big in itself,” said a source. “Do they think they have the Trump administration on his side?”

Meanwhile, in smaller but always influential markets like the United Kingdom, regulators have recently taken a more favorable position on Big Tech as part of a wider thrust to point out that “the United Kingdom is open to business”. So-called hyperscalers can see it as an opportunity to get out of the shade a little more.

Even if the regulatory climate remains difficult for large mergers and technological acquisitions, the “multicloud” positioning of Google can be useful. Cloud services and cybersecurity are not categorically in two areas where Google is dominating at the moment, so this agreement alone may not increase antitrust alarm ringtones.

If regulators are The verification of Google’s global domination, emphasizing Wiz’s ability to work on different cloud platforms, could help affirm that Google takes care of the competition.

Google Cloud just can’t catch up with AWS and Azure

The last reason why Google had to adopt the Multicloud model is simple: many customers simply do not use and do not use Google Cloud. In the fourth quarter of 2024, Statesman The data shows that WS had a share of 30% of the world cloud market, with Azure in second place with 21%. Google Cloud follows considerably behind them at 12%.

Why is Google so far behind? Some say it is because WSS started a start earlier on the ground. Some say that Microsoft’s business domination and the strong ecosystem – including its OPENAI partnership – have given it an advantage. Google does not have both advantages.

A few years ago, people wondered if Google could fill the gap, since its cloud offers were comparable to AWS and Azure.

“Google Cloud has always been a little mystery when it comes to third place in the market share of cloud infrastructure,” said former writer TC Ron Miller in TC today. “They perform the biggest cloud applications in the world, but have had trouble translating this into products for corporate customers.”

He thinks it changed under the CEO of Google Cloud Thomas Kurian. “He has much more credibility with business customers,” explains Miller. “They have developed quickly in the past two years and have a fairly substantial business, but are still late on Amazon and Microsoft in terms of income.”

During an investor call on Tuesday, Kurian stressed that Google continued Wiz because of its multi -oud capabilities, saying: “Multicloud is something that our customers want. Our commitment to Multicloud means that new IT projects make products with Google Cloud.

But Kurian also thinks that AI could change the game.

AI architectures could bring large companies to pool data from several places to a central cloud supplier, Kurian said. If this happens, multicloud protection can become less critical, but the security of their centralized data cache will be.

Until then, Multicloud is the pitch to “help customers identify, protect and defend against cyber-men in all the main clouds and even in on-site systems,” said Kurian.

Now we will see if regulators and end users are joining them.