Technology giant Google LLC has reportedly partnered with state-owned Saudi Aramco to explore cloud technology opportunities in Saudi Arabia. Both companies will work together to offer low latency, high-performance cloud services to enterprise customers in the nation.
Google Cloud now aims to develop and operate a novel cloud region in the kingdom. The terms and conditions of the agreement were not disclosed by both companies. Google said in the statement that its investment in Saudi Arabia will enable businesses to expand and scale their offerings in the kingdom.
According to sources familiar with the matter, the social media platform Snap and regional e-commerce company Noon were named as major customers. The agreement also accelerates its cloud computing business, which accounts for over $10 billion in annual revenue for Alphabet Inc.
Speaking on which, Karl D’Adamo who is the Senior Director for the infrastructure of Snap Inc said that it is pivotal to put the company’s infrastructure as close as possible to customers in a bid to offer a positive user experience.
With the novel Google Cloud services in the Kingdom of Saudi Arabia, the company can securely offer services to nearby customers at greater flexibility and higher speeds, said Hisham Zarka, managing director and CTO of Noon.
Notably, Google is in competition with Amazon and Microsoft in the growing cloud-computing market across the globe. The company presently operates in 24 regions with 73 availability zones, significantly less than its primary competitors Amazon Web Services (AWS) and Microsoft Azure.
Last year, AWS introduced its first cloud region in the Middle East, catering to prominent local clients such as rideshare service Careem and Emirati bank Emirates NBD. Microsoft also introduced its offering in the UAE around the same time, making Google Cloud a later entrant to the regional scene.