In a bid to bolster presence in the booming cloud space further, Alphabet’s (NASDAQ:GOOGL) division Google has entered into a definitive agreement to acquire Looker, a provider of data platform, for $2.6 billion.
Notably, Looker’s platform offers business intelligence, data applications and embedded analytics. The integration of these advanced data analytics solutions into Google Cloud platform will enhance Google’s analytics offerings in the cloud space.
The company intends to aid cloud customers in drawing data insights more efficiently on the back of this deal.
We believe the move is likely to help Google in gaining further momentum among the cloud customers.
Cloud Analytics Market Holds Promise
We note that addition of Looker will help the customers to collect, analyze, visualize and connect data on not only Google Cloud platform but also across other cloud platforms like Microsoft’s (NASDAQ:MSFT) Azure, Amazon’s (NASDAQ:AMZN) AWS, ISV applications and on-premises databases.
This feature is likely to help Google in rapidly penetrating the global cloud analytics market which as per a report from Research and Markets, is expected to reach $37.8 billion by 2023 at a CAGR of 22.35% between 2018 and 2023.
Further, according to a report from Analytical Research Cognizance, this particular market is expected to generate revenues of $88.3 billion by 2023 which are likely to witness a CAGR of 7.5% between 2018 and 2023.
Additionally, a report from MarketsandMarkets indicates that the global data analytics market is anticipated to reach $867.7 million by 2023 at a CAGR of 25.5% between 2018 and 2023.
Google is well-poised to reap benefits from these booming markets upon the completion of Looker acquisition.
Intensifying Cloud Competition
Growth opportunities in the cloud analytics and the data analytics markets are alluring enough to attract other cloud players.
Microsoft Azure’s Power BI Embedded and Amazon Web Services’ QuickSight are competitors of Looker’s analytics solutions. Further, companies like Domo and Tableau Software (NYSE:DATA) are also peers of Looker.
Consequently, competition in the cloud space intensifies with growing endeavors of the above-mentioned companies.
Nevertheless, Google with innovative solutions portfolio of Looker as well as its own strengthening analytics offerings is likely to fortify competitive position against the other cloud players.
Moreover, more than 350 joint customers of Google-Looker such as Hearst, King, Sunrun, Yahoo! (NASDAQ:AABA) and Buzzfeed to name a few, are likely to aid the search giant’s presence in the cloud computing market.
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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