Event Report: Google Cloud Industries Analyst Day

On March 31st, 2021, Google Cloud hosted an industry vertical analyst roundtable.  Google Cloud CEO, Thomas Kurian, opened up the day with a warm introduction on the role industries will play in the growth of Google Cloud.  Lori Mitchell-Keller, VP of Industry Solutions shared how Google Cloud differentiates its approach to Industries with customers.  Analysts were introduced to the key industries and  leaders for Google Cloud’s Verticals whom include:

Google Cloud’s mid-term goal is to build Level 4 partnerships with industry leaders.  Key focus areas for each of the verticals include

• Data and AI platforms
• Pervasive AI-enabled industry solutions
• Cross-functional digital ecosystems

Specific plans for each vertical include:

• CPG – know customers in a data privacy first world, deliver growth in an omni channel ecosystem, and enable a more intelligent sustainable operations
• FSI – humanize digital experiences, modernize core technologies and drive out technical debt, adjust to a deluge of regulatory requirements, and manage risk through data
• Health and Life Sciences – accelerate R&D and clinical insights, achieve precision decisions with ML/AI, and enable population health and value based care models
• Manufacturing – digitize customer journeys to improve experience through data, optmiize operations and sustainability, and address cultural and technology needs for digital transformation
• Media and entertainment – drive up content velocity, deliver mass personalization at scale, ad create dynamic feedback loops to improve relationships and context
• Public Sector – deliver compliance without compromise, provide tools to accelerate digital transformation, solve for mission needs, and apply vast public data troves for public good.
• Retail – focus on immersive and frictionless customer experiences using first party data to accelerate activation, and decrease cost of business
• Supply Chain and Logistics – deliver exceptional customer experience, drive circular economy and sustainability, achieve autonomous enterprise status
• Telco and CSPs – identify new digital monetization, improve low touch high value experiences, upgrade legacy technical debt and core systems, and upskill work force.

While most of the customers are focused on Level 1 and Level 2 capabilities, Google Cloud is starting to see growth in Level 3 vertical industry wins and becoming more competitive with both Amazon Web Services and MIcrosoft Azure in industry deals (see Figure 1).  Public wins at Amwell, Ford, MLB, Target, Unilever, Unity, and Verizon are proof points on the extent of the partnerships with industry for data-driven digital transformation.

Figure 1. The Five Levels Of Cloud Provider Partnerships

In my upcoming book, Everybody Wants To Rule The World, we discuss how the collapse of vertical industries along a convergence of value chains will lead to 100 companies in 50 value chains across seven major geographic trade zones by 2050.  Established organizations who survive to compete against the next set of well-funded digital giants will have to create joint venture partnerships in Level 5 in order to succeed.

Given the capital constraints of the established industry leaders, most will have to partner instead of build. Many of those partnerships will occur with the major cloud platform vendors who can provide the investment capital, the technical expertise, and the key cloud computing and technology prowess needed to win.  Digital leaders who plan for the future will have to double down on one to two cloud players across the world to build deep partnerships or invest in the capital to establish their capabilities.  Winners will build or partner.