Google’s acquisition of analytics startup for $2.6bn biggest since 2014
Google is acquiring California based Looker in an all-cash transaction that is expected to close later this year. "Looker extends our business analytics offering with important capabilities," said Kurian, Senior Vice President.
In February, Thomas Kurian who recently joined Google Cloud as its Senior Vice President said, “You will see us accelerate the growth even faster than we have to date.” In an attempt to boost its cloud-computing services, Google announced it will acquire California-based start-up, Looker for 2.6 billion USD.
Google tries to catch up in cloud race
Google’s rivals like Microsoft and Amazon are dominating the cloud market. Unlike Amazon’s widely popular Amazon Web Services or Microsoft’s Office software, Google has been unable to champion its technical expertise in the enterprise market.
According to a Canalys report, Google had just 7.2 per cent of the cloud market share at the end of 2018. It is far behind Microsoft and Amazon that owns 13.7 per cent and 32 per cent, respectively. Its ability to sell technology services to businesses has fallen behind, despite its popularity through successful workplace software and tools.
This is Google’s fourth-biggest acquisition. Kurian announced that he planned to hire more salespeople and target specific industries like retail and finance to make a larger impact in the cloud enterprise market.
Looker is a relatively new start-up. Launched in 2012, the business analytics tool allows customers to visualise data in addition to providing a Business Intelligence (BI) platform. In December 2018, Looker raised 103 billion USD at a valuation of 1.5 billion USD. It was listed under Business Insider’s “44 enterprise startups to bet your career on in 2019”
According to Google, this partnership will help improve its ability to define business metrics consistently and provide users with a powerful analytics platform for accurate results.
In a press release, Google said, “This acquisition builds on an existing partnership between our two companies where we share more than 350 joint customers, such as Buzzfeed, Hearst, King, Sunrun, WPP Essence, and Yahoo! who are already using our products together.”
Thomas Kurian | Source: GettyImages
Looker gained prominence in recent years as it allowed customers to gather and examine trends in data that may be stored in multiple third-party databases. This means it supports tools like Amazon Web Services and Azure.
Google has the opportunity to integrate its technology with Looker’s tool. Kurian said that Google is likely to integrate its machine-learning technologies -- such as computers understanding text and speech for input -- with Looker’s business analytics tool.
In February, Google announced its intent to acquire Alooma -- a data migration tool -- to simplify cloud migration. Underneath this investment, it is evident that the tech-giant is trying harder to attract the game changers. It hopes to expand its customer base from smaller players like Snapchat and Spotify to the bigger ones like banks, health-care companies, and larger retailers.