Jefferies Talks Google (GOOGL) Gossip Following NEXT Conference

Jefferies analyst, Brian Pitz, attended the the Google (NASDAQ: GOOGL) cloud platform NEXT conference and brought additional insights into the increasing competition between Google's and Amazon's cloud platforms. No change to Buy rating or $950 PT.

The GCP (Google Cloud Platform) seems to be gaining traction with Apple and Spotify as new customers. At the two-day GCP NEXT Conference, the company unveiled a number of sophisticated software features designed to appeal to developers using Google, Amazon, or on-premises infrastructure. This reflects a shift where developers spend less time thinking about the plumbing and infrastructure, to a world where developers think about the application itself.

Stackdriver is a cross platform dashboard that allows developers to easily manage applications running across Google, Amazon, or on-premises infrastructure through a single interface. Developers can also leverage Google's data crunching and machine learning tools, which enable sophisticated services like image recognition and language translation out-of-the-box. Stackdriver is a clever way to entice companies already running their businesses on AWS or Azure to give GCP a try and eventually move part of their workloads to Google.

GCP adds two new data-centers in West Coast US (Oregon) and Japan; both will be operational by year-end. These are the first two of more than 10 add'l GCP regions Google will add through 2017.

Apple moving (an unknown) portion of its cloud business from AWS to GCP. Neither company has confirmed the size of this deal, but the original media report suggested $400-600MM, or roughly half of what AAPL was reportedly spending on AWS.

For an analyst ratings summary and ratings history on Alphabet click here. For more ratings news on Alphabet click here.

Shares of Alphabet closed at $738.06 yesterday.

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