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Google's cloud platform lands Spotify as a client, possibly at Amazon's expense

Feb. 23, 2016 1:54 PM ETAlphabet Inc. (GOOG) StockGOOG, AMZN, GOOGL, SPOTBy: Eric Jhonsa, SA News Editor13 Comments
  • In a marquee win for Google (GOOG -1.5%) in its battle against cloud infrastructure giant Amazon Web Services (AWS), subscription music streaming leader Spotify (MUSIC) has announced it's migrating its infrastructure to the Google Cloud Platform.
  • Spotify, which has historically relied on its own servers: "The storage, compute and network services available from cloud providers are as high quality, high performance and low cost as what the traditional approach provides. This makes the move to the cloud a no-brainer for us. Google, in our experience, has an edge here, but it’s a competitive space and we expect the big players to be battling it out for the foreseeable future."
  • The company adds Google's unmatched data platform and tools were a big selling point. "Good infrastructure isn’t just about keeping things up and running, it’s about making all of our teams more efficient and more effective, and Google’s data stack does that for us in spades." Spotify VP Nicholas Harteau says his firm has already moved 250K of its 20M user accounts onto Google's cloud, and will migrate its entire service to Google within 18 months.
  • Spotify never mentions AWS in its announcement. However, the company is listed on Amazon's (NASDAQ:AMZN) site as a client. Per Amazon, Spotify has used AWS' S3 storage service to store music tracks, and its CloudFront CDN service to deliver apps and software updates.
  • The deal comes a few months after Google put VMware co-founder Diane Greene in charge of its cloud businesses, following the acquisition of a startup Greene founded (Bebop Technologies).
  • Synergy Research estimates Amazon still had over 30% of the broader market for public, private, and hybrid cloud infrastructure and app platform services, a share over 3x that of #2 Microsoft. IBM was ranked #3, and Google #4.

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