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Google Cloud will soon have a major new feature to better compete with Amazon and Microsoft

Google Urs Hölzle
Google's Urs Hölzle Google/Business Insider screen capture
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  • Google is making a version of its cloud available for companies to run in their own data centers, otherwise known as "on premises" computing.
  • On premises computing is the old-fashioned way of doing IT. It's the thing that cloud computing was supposed to change.
  • But because most companies are not ready to unplug their data centers and put all their IT in the cloud, cloud players are finding ways to bring their cloud tech to a company's data center.
  • This is a major head-bow by Google to do what it takes to win more big cloud customers.


Google on Tuesday announced a new cloud product it is calling GKE On-Prem. It is a version of Google's cloud that will run in its customers' own private data centers and it is a major attempt by Google to grab customers away from Microsoft and Amazon.

A company can sign up to use Google's cloud for some of its IT needs and can use this product for the tech that it won't, or can't, move to the cloud. This kind of computing is known as the "hybrid" cloud, in that it is a mix of cloud computing and old fashioned "on premises" computing.

Hybrid is Microsoft's specialty. And it is the one thing that Amazon's cloud, Amazon Web Services, isn't known for, although AWS does dabble in the area through its partnership with VMware and other less prominent projects, like  Amazon's own version of Linux.

"We’re ending the false dichotomy between on premises and cloud,” said Google's Urs Hölzle on stage to describe this new product.

Hölzle is Google's top infrastructure engineer. He's Google employee No. 8, the technical genius who built most of Google's infrastructure used for things like search and Gmail and is now involved in turning Google's data centers into cloud products and services.

Google GKE on premise
Google demonstrates its new GKE On Premise product at the Google Next 2018 conference  Google/Business Insider screen capture

He has also historically preached that companies, eventually, won't need their data centers at all but will do everything in the cloud. That is, they will rent the computers and software they need from cloud vendors and won't manage it themselves at all anymore.

He's right, too. A growing number of companies are choosing to do exactly that but they are doing so with Google's competitor Amazon Web Services. This thanks to AWS's massive lead in the number of features it offers.

So this new Google on-premises product represents an understanding that baby steps are needed for Google to really compete neck-and-neck with Amazon.

Google believes it has superior technology in a number of critical areas, including security, machine learning/artificial intelligence, and area called containers which is a way to fine-tune the cloud for the needs of different apps. (Google invented a super popular container technology called Kubernetes).

Meanwhile, this product, GKE On-Prem, also lets Google compete better with the acknowledged No. 2 cloud player, Microsoft. Microsoft is known for doing hybrid computing. Microsoft grew up on the era before cloud computing, when the whole IT world was on-premises. Microsoft has since shown that it is a master of cloud computing, too. It's cloud, Azure, has always been set up to do hybrid.

Google's GKE On-Prem is expected to be released to early customers for testing in the fall.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.