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Google and Saudi Aramco have joined hands to add the Kingdom to the global network of Google Cloud Platform. Under the deal, the technology giant would start selling its cloud computing services to the Saudi market through state-owned oil behemoth Aramco.
Understanding Cloud Computing
Google and Aramco Shake Hands
In a market announcement recently, Aramco mentioned that the collaboration would allow the Company to tap into the rapidly expanding cloud services market across Saudi Arabia, which is projected to reach USD 10 billion over the next decade.
Under the deal, Google would partner with Saudi Aramco Development Company, a subsidiary of the oil behemoth, which would then select a local reseller for the cloud services offered by Google.
©Kalkine Group 2020
Furthermore, reporting the deal to the shareholders, Aramco highlighted that the agreement would deliver high-performance and low-latency cloud services to enterprise customers across the Kingdom.
In 2018, the US-based tech giant started the negotiations. However, the talks were stalled during the same year, in the wake of the murder of journalist Jamal Khashoggi.
Google is progressing with its plans to establish and operate a new cloud region in the Kingdom. The investment would give the cloud computing business a push while bringing a smile on its parent – Alphabet Inc, for which the cloud business brings over USD 10 billion in revenue per annum.
What’s In for Saudi Arabia?
While Google is anticipating to gain some edge over other cloud-computing businesses such as Amazon Web Services and Microsoft Azure from the agreement, Saudi Arabia is looking forward to its vision 2030.
The vision 2030 has been one of the top agendas of the Kingdom to diversify its oil-driven economy and develop other sectors such as technology and tourism. Saudi Arabia has already invested millions in US technology companies through its Public Investment Fund.
Furthermore, the Kingdom has been advancing well on its diversification goal with the recently achieved milestone in the face of its first tech unicorn – Saudi STC Pay, which now plans to extend its roots via expanding the product line of financial services.
Also Read: Saudi Arabia to trim expenditures amid the global oil crisis
Google Agreement Risking Backlash
While the two giants seem to be showing a symbiotic relationship in the current agreement, Google is also risking some backlash from staff and investors who are opposing business with the fossil fuel industry.
Moreover, employees at the Company have called on to abstain from work in the fossil fuel industry, citing environmental concerns and authoritarian attitude of the regime, accused of human rights abuses.
Must read: Google services’ global outage: Here’s what exactly happened?
