In a move to minimize reliance on advertising revenue, Google’s (NASDAQ: GOOG) cloud division has formed a specialized group aimed at constructing business revolving around blockchain technology. The company is primarily targetting retail, health care, financial services, media and entertainment, and manufacturing. In the belief that decentralization could guide future business, it’s a smart move from the tech giant to capitalize on market share.
Although Google’s financial outlook has historically been impressive, the company needs to branch out into emerging technology to cement its prominence whilst utilizing a broad range of industry specialists and available cash flow.
The growing market for third-party storage services is a golden opportunity for Google. This marks a big move from Google, whose cloud services amidst the likes of Amazon, operate as centralized hubs.
Google now wishes to turn directly towards developers in the blockchain space. Richard Widmann, head of strategy for digital assets at Google’s cloud division, is aiming towards “things we can do to reduce the frictions some customers have with respect to paying for centralized cloud utilizing cryptocurrencies” – meaning that cryptocurrency might play an established role in Google’s new direction.
As customers across the chosen target areas start to adopt blockchain technology, Google has the opportunity to play a vital part in industry growth, while maximizing cloud-based revenue in a strategic move away from advertising revenue. The blockchain division might have a serious part to play in the future of the company, and now is a great time to set the precedent for other cloud services.
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.