The Information: Google to take on Microsoft with cloud capabilities for on-prem servers

Dive Brief:

Google is responding to enterprise computing needs by making custom-designed computers to run in organizations' own data centers, reports The Information. The computers include server, storage and networking functions specifically for "a handful of large customers," according to two sources close to the project in the report.
It is unknown when or if Google will sell the custom computers to more customers, according to the report. If Google eventually transitions to commercialization for a custom computer, it would be the first time the "cloud unit would oversee hardware design."
The devices are comprised of the same servers, storage and networking software that Google Cloud's data centers operate on.

Dive Insight:

Committing to a full transfer from a private data center to the cloud is something many large companies are not entirely comfortable with yet. Google is acknowledging this with the latest reported endeavor.

For the time being, Google remains the third top cloud provider, trailing AWS and Microsoft, but the prospect of a custom tool may be ideal for companies in regulated industries that are restricted from using off-premise cloud services.

Customizable tech is integral for companies undergoing digital transformation because it's a continuous process. The cloud has allowed companies to downsize data centers, but eliminating their servers entirely is not an option. Enter the hybrid cloud, where AWS and Microsoft already reside.

Microsoft allows its customers to extend some of Azure's capabilities in their on-premise data centers. And Google surpassed Microsoft in serverless computing, despite entering the market nearly two years after the "Redmond Monster."

By producing more cloud functions that go beyond Google's data centers, the company is signaling a larger market of cloud services that work in-house or on-site for Google Cloud customers. Customers are engaged in cloud computing but refrain from embracing the absolutist approach to the cloud where it's the only form of computing used.