Amazon (AMZN) Stock: Amazon and Google Team Up for New Multicloud Service

TLDR

• Amazon and Google launched a joint multicloud networking service on Sunday to improve connectivity between their cloud platforms
• The service reduces setup time for private, high-speed links from weeks to minutes
• Launch comes after an AWS outage on October 20 cost U.S. companies up to $650 million in losses
• Salesforce is among the early adopters of the new networking service
• AWS generated $33 billion in cloud revenue last quarter, more than double Google’s $15.16 billion

Amazon and Google announced a new multicloud networking service on Sunday. The joint offering aims to solve connectivity problems that have plagued cloud customers.

Amazon.com, Inc., AMZN

The service lets companies set up private, high-speed connections between AWS and Google Cloud in minutes. Previously, this process took weeks to complete.

The timing matters. An AWS outage on October 20 knocked thousands of websites offline, including Snapchat and Reddit. That single disruption will cost U.S. companies between $500 million and $650 million, according to analytics firm Parametrix.

The new offering merges AWS’ Interconnect-multicloud with Google Cloud’s Cross-Cloud Interconnect. This combination improves how the two networks work together.

Robert Kennedy, vice president of network services at AWS, called it a fundamental shift in multicloud connectivity. Rob Enns from Google Cloud said the joint network makes it easier for customers to move data and applications between clouds.

Early Adoption and Market Position

Salesforce has already signed on as an early user. The customer relationship management giant is testing the new connectivity approach.

AWS remains the world’s largest cloud provider. Microsoft’s Azure holds second place, with Google Cloud in third.

The cloud infrastructure race continues heating up. All three companies are pouring billions into building capacity for growing internet traffic and artificial intelligence demands.

Revenue Performance

AWS delivered strong numbers in the third quarter. The cloud division generated $33 billion in revenue during that period.

Google Cloud brought in $15.16 billion in the same quarter. That puts AWS revenue at more than double Google’s cloud business.

The gap shows why these partnerships matter. Google needs better connectivity options to compete with AWS’s market dominance.

Companies are increasingly using multiple cloud providers instead of relying on one. This multicloud approach reduces risk but creates complexity.

The new service addresses that complexity. It gives customers a faster, more reliable way to connect AWS and Google Cloud infrastructure.

Both companies benefit from the partnership. AWS strengthens its position as the go-to cloud provider. Google gains ground in making its cloud more attractive to large enterprises.

Tech giants continue investing heavily in infrastructure. The demand for computing power keeps growing as artificial intelligence applications expand.

Cloud outages have become costlier as more businesses depend on these services. The October AWS outage highlighted how much rides on reliable cloud connectivity.

The new service launches as both companies report their latest quarterly results. AWS generated $33 billion in third-quarter revenue, while Google Cloud brought in $15.16 billion.

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