Insight Bite: Google Aims High with CloudSimple Acquisition

Google has taken its partnership with CloudSimple to the next level by acquiring the VMware-as-a-Service provider for an undisclosed sum.

CloudSimple’s software lets enterprises more easily move VMware workloads from on-premise computers to the Google Cloud. Google has been using the service to offer customers an easy way to run VMware on its cloud offering since the two companies first teamed up in July of 2019.

As critical infrastructure for a vast number of enterprises, VMware allows for applications to be migrated to a public cloud, without needing them to be fundamentally re-architected. This means the apps can continue running as they would on-site, while benefiting from all the advantages of the cloud; like reduced costs, faster performance, and greater agility.

“Many enterprises are using VMware in their on-premises environments to run a variety of workloads” wrote Google Cloud’s vice president of engineering Rich Sanzi in a blog post on the acquisition. “With CloudSimple, our customers can migrate their VMware workloads from on-premises data centers directly into Google Cloud VMware Solution by CloudSimple, while also creating new VMware workloads as needed.”

By purchasing CloudSimple outright, Google is not offering a new product or service, but is protecting its market positioning by giving enterprises fewer reasons to opt for competing services like Microsoft’s Azure. Microsoft’s offering has historically been supported by CloudSimple, but seems unlikely to remain so when Google takes the reins.

The acquisition is likely to help Google catch up with Microsoft and Amazon, which together dominate the increasingly competitive cloud migration services market. This market is expected to grow at a CAGR of 23.9 percent until 2022 as enterprises continue to seek increased efficiency and enhanced security by moving operations to the cloud.

Both Microsoft and Amazon have also recently made tactical acquisitions to bolster their growth. Amazon Web Services acquired Canadian cloud storage firm TSO logic in January of this year to better help customers optimise cloud migration, and in October, Microsoft acquired Canadian cloud migration startup Mover to make it easier for customers to migrate files to Microsoft 365.

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