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Google cloud unit close to winning PayPal business: CNBC

Published 08/30/2016, 01:28 PM
© Reuters. File photo of a Google search page is seen through a magnifying glass in this photo illustration taken in Berlin
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(Reuters) - Alphabet (NASDAQ:GOOGL) Inc's Google is close to winning PayPal Holdings Inc as a client for its cloud business, potentially beating out Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT), CNBC reported on Tuesday.

While Google is the front-runner, the online payments processor is evaluating the other providers and hasn't made any decision yet, CNBC reported, citing people familiar with the matter. (http://cnb.cx/2bGbowT)

However, PayPal may not move its technology infrastructure in the fourth quarter, the peak period for online commerce, CNBC said.

PayPal has some existing business with Amazon Web Services, according to the CNBC report.

Google has been trying to beef up its presence in cloud computing, a market dominated by Amazon and Microsoft.

Google landed Home Depot Inc (NYSE:HD) as a client in March, highlighting the momentum its cloud business has gained under the leadership of Diane Greene, a co-founder of VMWare Inc. Greene joined Google late last year.

Google also counts popular messaging app Snapchat and the world's biggest paid music streaming service, Spotify, as clients.

Overall, Google was the No. 4 player in cloud infrastructure services last year with a 4 percent market share, according to Synergy Research.

Amazon's AWS cornered 31 percent of the market, while Microsoft's Azure had 9 percent and IBM (NYSE:IBM) 7 percent.

© Reuters. File photo of a Google search page is seen through a magnifying glass in this photo illustration taken in Berlin

Google, PayPal, Amazon did not respond immediately to a request for comment. Microsoft declined to comment on the report.

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