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Alphabet ( GOOGL ) will open data centers in Oregon, Japan and elsewhere before the end of 2017 to support its cloud infrastructure and app platforms and take on Amazon.com ( AMZN ), the industry’s current leader, according to a news report Tuesday. Google has three “cloud regions” now and plans to add another 10 cloud regions over the next 12 to 18 months, either as facilities leased from other providers, or built and operated by Google, according to the Bloomberg report. “Cloud region” is the Google term for a data center equipped with computers and software that customers can rent over the Internet. Google’s new cloud chief Diane Greene – who also sits on the Alphabet board – will oversee the expansion, Bloomberg said. Greene co-founded VMware in 1998. “There was a pretty darn good vision in place and now I’m just bringing everybody together so that we all know what we’re doing,” Bloomberg quoted Greene as saying. “The cloud is a revolution, I mean it’s rivaling the industrial revolution, and it’s pretty fun being this involved.” The openings will increase the number of “cloud regions” run by Google to 15, according the Bloomberg report. Amazon currently has 12 regions and plans to open another five. Amazon unit Amazon Web Services (AWS) is now the biggest provider of infrastructure as a service (IaaS), where customers rent computer servers and data storage systems accessed via the Internet. Microsoft ( MSFT ) ranks second, while Alphabet unit Google ranks third. Cloud computing, an increasingly popular way for companies to run their IT operations. That’s a $20 billion-a-year business forecast to grow 35 percent over the next year, according to Gartner Inc. Google is also working on tools that can broaden its corporate user base to include less technically savvy customers, and it’s embarked on a hiring spree aimed at selling and explaining these new products, according to the report. The Internet company is set to hold a conference in San Francisco for cloud customers starting Wednesday. Amazon stock rose 1.2% to close at 560.48 on Tuesday. Microsoft stock rose a fraction to close at 54.07. Alphabet stock fell a fraction to close at 760.05. Scalper1 News
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