The clock is ticking for Google Cloud.
The Google unit, which sells computing services to big companies, is under pressure from top management to pass Amazon or Microsoft—currently first and second, respectively, in cloud market share—or risk losing funding. While the company has invested heavily in the business since last year, Google wants its cloud group to outrank those of one or both of its two main rivals by 2023, said people with knowledge of the matter.
That timeline was devised early last year, after an intense monthslong debate among senior leaders at Google and its parent company Alphabet over the future of the cloud business, a person with direct knowledge of the matter told The Information. The group, which included Google CEO Sundar Pichai, Alphabet chief financial officer Ruth Porat and then-CEO of Alphabet Larry Page, discussed whether Google could “win” in the business, who would be best to lead the effort and the difficulties of competing on things other than technology, such as sales and marketing. The group even talked about—and eventually dismissed—the idea of leaving the market entirely, this person said.