Cloud Computing: Who Owns the Castles in the Sky? (II)

The leaders in western markets and China market have emerged

Morningstar Equity Analysts 24 November, 2017 | 14:45
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Morningstar Equity Analyst Rodney Nelson continues to share his views on cloud market developments.

Google has made an extraordinary capital investment. Do you see it catching up?

Nelson: We expect the cloud to be a small component of Google's broader business, because its search and advertising business is so massive. Any amount of capital investment that Google makes into a particular product or service is going to have a very difficult time moving the needle of the broader business, because that advertising business is still growing very rapidly.

Where Google can be a player in this market is with its inherent expertise at data analytics and artificial intelligence. These drive that core search and advertising business. Being able to manipulate and parse through data and ultimately make decisions based on that data is a core component of any marketing campaign. As they expose some of their AI technologies to their own customers and unlock some of the frameworks that they utilize in their own business, it will attract a lot of customers to their cloud business.

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