Google makes rain from the cloud

Posted May 13th 2009 4:30PM by Tom Taulli
Filed under: Google (GOOG), salesforce.com inc (CRM)

So-called "cloud computing" is the big-thing in Corporate America – that is, offloading information technology (IT) services to the web. It's a cost-saver since there is no need to buy infrastructure.

Some of the hot players in the space include salesforce.com, inc. (NYSE: CRM) and NetSuite Inc. (NYSE: N).

Well,there is another company getting traction: Google, Inc (Nasdaq: GOOG).

And, it should be no surprise. After all, Google has a global web infrastructure that has massive scale. Moreover, it has the technical capability to build mission-critical applications -- and yet they are easy to use.

So, as a testament to its Corporate cloud business, Google announced this week a key deal with Valeo to use Google Apps. The installation will handle roughly 30,000 employees across 192 locations and 27 countries. To implement the system, Capgemini will provide consulting services.

Basically, Valeo believes it will cut costs – and yet have helpful tools that should help boost productivity. All in all, it's definitely compelling and an indication that Google has a nice opportunity in the Corporate space.

Tom Taulli is the author of various books, including The Complete M&A Handbook and the founder of BizEquity, a free online business valuation tool for small businesses. You can reach him at his personal blog.

Tags: Cloud computing, CloudComputing