Enterprise

Here's how Google plans to beat Amazon

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Diane Greene
Diane Greene  Business Insider

Google is going after the cloud computing market in a big way.

The company invested nearly $10 billion of capital expenditures to build its cloud business in 2015 alone, new cloud leader Diane Greene said during her keynote speech on Wednesday at Google's cloud tech conference in San Francisco.

And that's just the tip of the iceberg. Google has announced a massive plan to build more new cloud data centers around the world by 2017, costing billions more.

On Wednesday, Greene and other Google execs, like executive chairman Eric Schmidt, discussed their master plan to win in cloud: automation.

That means while companies can rent computers and storage and networking from Google cloud, Google is really trying to appeal to programmers who don't want to mess with that stuff.

"It just magically happens"

With one of Google's cloud services, known as Google's Apps Engine, programmers can host their apps on Google's cloud and not think about the stuff it takes to run their apps, like configuring servers, or networks, or whatnot. 

Eric Schmidt
Google executive chairman Eric Schmidt  Business Insider

Greene claims, "It just magically happens."

Programmers can do a similar thing with Amazon's cloud and many others (including Salesforce), with varying degrees of headache-free operation. It's a form of cloud computing known as "platform-as-a-service."  

But Amazon has also built a large business of simply renting computers, storage and networks in its data center by the hour and leaving it to the customers to set things up.

It's got a growing cadre of companies that are shutting down their own private data centers and renting all of that stuff from Amazon. 

That's a form of cloud computing called "infrastructure as a service." 

The deepest pockets today are the enterprise IT companies who cumulatively spend about $3.5 trillion a year on technology. And while Google has secured a couple of high-profile enterprise customers, announcing deals with Disney and Coca-Cola, on Wednesday. 

So Google is doing that releasing features for more of the ho-hum security, compliance, monitoring features this market needs. 

But Schmidt thinks that the next generation of successful companies, the Ubers and Snapchat five years from now, won't be doing IT the old fashioned way.  

And Google has its sights set on them, wanting them to grow up on its cloud like Netflix grew up on Amazon's cloud.

Good-bye to the IT department

google data centers
Google's data center  Google

Google's message is almost a call to end the classic enterprise IT department.

"We want to have no-ops, automated IT," Greene told the audience, meaning no IT operations humans required.

Instead, apps and services "just work, without you ever having to think about if you've got enough servers, or if things are working right. And we're well on our way to a full 'no ops' where you can just write and run," she says.

She uses one of Google's best-known customers, Snapchat, as an example, saying, "They went from 0 to 100 million users without even formally hiring an ops team. Tim Sehn, their VP of engineering was like, 'Yeah, it was just me and one other guy and it just worked. We scaled up.'"

Many of Google's most advanced features, like its "machine learning" big data analytics, are designed to be used without having to rent underlying servers and manage them. 

When Eric Schmidt took the stage, he described Google's cloud goal by comparing it to the evolution of the automobile.

Once upon a time, cars relied on a manual choke to start them. Then came automatic ignitions and then things like cruise control and "in 2020, the car drives itself," he says.

Google sees itself as building the self-driving data center for the world's next generation of businesses.

 

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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.