Alphabet (NASDAQ:GOOG), Google’s parent company, has been focusing its efforts on growing its cloud offerings over recent years. While the technology giant has done well to become the third-largest player in the rapidly-growing segment, we believe that the company should explore strategic acquisition opportunities to cement its position. In our opinion, a strong acquisition candidate is Nutanix. Trefis highlights the reasons why Google should acquire Nutanix in an interactive dashboard along with our estimate for a potential acquisition price. We highlight key takeaways from our dashboard below.
Trefis estimates Google’s valuation to be $1,286 per share, which is roughly 10% ahead of the current market price. You can also see more Trefis technology company data here.
Why Should Google Acquire Nutanix?
Hybrid Cloud Is Key
Most large public cloud players have established dedicated relationships with leading hybrid cloud providers (with strong on-premise presence) or have acquired them.
Amazon and Microsoft have preferred relationships for AWS and Azure, respectively with VMware.
IBM had acquired Red Hat to further IBM’s cloud.
Microsoft also has relationships with IBM and Red Hat for Azure. Microsoft and Oracle had also recently tied-up to make their clouds interoperable – Oracle has a large on-premise presence due to its database workloads.
Google released its own hybrid cloud platform (called Anthos) in April, but the company needs an established player in the data center market to fulfill its goal of reaching out to the private clouds
Although Google’s management does not disclose numbers around Google cloud, the company has pointed out that cloud as an area of investment commands a lion’s share of its outlay. The company also hired a new CEO for its Cloud business (ex-Oracle executive, Thomas Kurian),
We think Nutanix could fit in well with Google’s hybrid cloud strategy. Nutanix is the leader in the hyper converged infrastructure (single appliance modules that enable building virtualization in data centers). #nutanix #hybrid #cloud #google #trefix #cybersecurity #newtechnologies #Linux #CyberCrypto #awareness #technoboy