Google Launches Compute Engine To Challenge Amazon
While the Nexus 7 tablet and other Android related announcements were the major focus at Google I/O 2012, Google (NASDAQ:GOOG) also made other interesting announcements related to its not-as-glamorous services. The search giant has added a number of new features to its App Engine and launched a new service called the Compute Engine, which will compete directly with Amazon (NASDAQ:AMZN) Web Services by providing a way to buy cloud infrastructure from Google. Compute Engine offers a way for developers and enterprise customers to buy raw computing power on Google’s servers. [1]
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While its App Engine is a Platform-as-a-Service offering, Google will become an Infrastructure-as-a-Service provider with Compute Engine, just like Amazon. Google will enable developers to run their current App Engine applications on their own VMs using Compute Engine.
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Besides launching Compute Engine, the company also announced a number of significant upgrades and a new version (1.7.0) of App Engine. The upgrades are related to speed, performance and functionality which could make App Engine a better option for developers compared to its alternatives by Microsoft (NASDAQ:MSFT) and Amazon – the other big players in the rapidly growing cloud computing market.
We currently have a $680 Trefis price estimate for Google, which stands nearly 20% above its market price. App Engine accounts for a small fraction of its overall revenues, which are driven primarily by its search advertising business.
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Notes:- Google Compute Engine: Computing without limits, Google Developers Blog [↩]