Google’s parent company Alphabet Inc. (NASDAQ: GOOGL) just announced its Google Cloud division’s acquisition of an analytics and business intelligence startup, Looker.
The function behind Looker is to compile data that businesses generate and organize it in a way that makes it easy to compare, visualize, and make decisions. Notably, the startup is efficient at managing multiple streams from different databases that are used to store information.
The transaction is the fourth largest transaction that Google has dealt with, and here’s a breakdown of why it happened.
While Google Cloud’s top competitors Amazon Web Services and Microsoft cloud have already ventured deep into the enterprise market, Google Cloud has served mainly small businesses. This lag behind the competitors will be caught up more, now that Looker is aboard and can provide strength in data analytics.
Google makes a vast majority of its money controlling the world’s advertising market. In fact, about 85% of its revenue comes from advertising. The Company wants to dig into database solutions and expand on its empire.
Lately, Google has come under scrutiny by federal investigators at the Department of Justice for monopolistic accusations. To avoid a tarnished reputation and flip the switch on suspicions, Google is looking to be more of a fair sportsman.
Looker can help with Google’s image. The startup played nice with other major database providers from Google’s competitors. So far, Looker states that this will continue under Alphabet.
Even as the company expands into serving new markets, and with its history of enabling access to complicated products to the masses, it may mean that Google could extend Looker’s capabilities to the general public.
Google’s purchase of Looker worth USD 2.6 Billion, compared to its revenue of USD 100 Billion yearly, looks to become an impactful asset for the Company.