By having a vertically aligned strategy, Google Cloud is able to outpace competitors and becomes the top cloud provider to the retail sector, according to the latest research of technology analyst firm Canalys.
Canalys assessed the top cloud service providers’ performance in the retail and e-commerce sectors by looking at vertical-specific solutions, key clients, technology partnerships, and overall strategies in the sector.
Google Cloud has overtaken overall market leaders Amazon Web Services and Microsoft Azure in the retail space.
Canalys said, as part of its strategy, “Google Cloud has also been hiring aggressively and establishing worldwide systems integrator partnerships to accelerate retail penetration.” US consumer retailer named Google Cloud as the cloud provider of its data enterprise platform in a multi-year agreement. Google Cloud’s client portfolio has many of the world’s leading retailers, including Costco, Germany-based Metro, and Target.
Search and advertising
By using its strength in advertising and search, Google Cloud can offer retail customers much more than compute and storage.
The COVID-19 pandemic has dramatically affected retail. Many retailers have adjusted by leaning on their e-commerce capabilities. As e-commerce demand grows, retailers are looking to cloud service providers to support and grow their businesses and arm them with key technologies. A reliable cloud service provider not only supplies compute and storage, but also retail-specific solutions and support teams.
“Retailers need proof that their cloud service provider can support them not just by growing, but also by driving platform innovation. A provider that has specialized support teams and an ecosystem of partners innovating on its behalf gives customers confidence in the relationship,” said Blake Murray, research analyst, Canalys.
Azure, AWS, Alibaba
Microsoft Azure, AWS, and Alibaba Cloud were rated as advanced in their abilities to serve retailers. Azure is well established among enterprises and offers over 2,000 retail-specific applications through its partner network. AWS brings long-standing experience in retail and offers a unique retail competency program that validates a partner’s technical proficiency and customer success. But Amazon in general remains a major competitor to the retail sector.
“Due to this competitive aspect, many major retailers have opted to work with other cloud service providers,” said Murray.
Alibaba Cloud is expanding from its dominant presence in China to build infrastructure and partnerships in Europe and other markets. But the continued division between China and the west will make it difficult for Alibaba to make inroads in some countries.