Google in talks with Tencent, others for cloud services in China - BBG

08 Août, 2018, 20:25 | Auteur: Auguste Feret
  • Google sign at the China Digital Entertainment Expoi. US firm may hook up with China giant Tencent. Reuters

Google is in talks with Tencent Holdings Ltd., Inspur Group and other Chinese companies to offer cloud services in the country, Bloomberg reports, citing people familiar with the discussions.

A Google sign is seen during the China Digital Entertainment Expo and Conference (ChinaJoy) in Shanghai, China August 3, 2018.

According to the sources, these discussions began early this year, and Google narrowed its potential partners down to three firms in March.

However, trade tensions between China and the United States are hindering Google's cloud services launch plans in China.

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Representatives from Google, Tencent, and Inspur either haven't or wouldn't respond to requests for comment, which isn't surprising. Google gave up on the search market in China years ago, after the government demanded strict search results censorship.

A cloud partnership for Google in China would help the company compete more with larger rivals Amazon.com Inc. and Microsoft Corp.

Alphabet Inc (NASDAQ:GOOGL) is all-in on its Google Cloud Platform, which competes with Amazon's AWS and Microsoft's Azure, and worldwide growth will no doubt be a big part of the growth story. And most recently, it seems that the company wants to expand its influence in this market by bringing the G Suite service to China through its domestic partners and services that provide cloud storage inland. It has arrived at a patent-sharing deal with Tencent, which will allow the two companies to jointly develop new technologies, Bloomberg said.

Google has touted the security and AI strengths of its cloud division.

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