PLM and Google enterprise numeric factoids

Google is making lots of things these days. The list includes search, data centers, mobile phones, tablets, wearable devices, self driving cars and more… The question about Google and PLM is one that very often drives rumors and lots of speculations. It usually comes from the side of analyzes applied on Google enterprise business. Here is the next round of discussions. I captured this story in ArnoldIT blog – Google and Its Enterprise Push: Changes Ahead? The assessment is that Google is probably making around $1B of their revenues driving variety of enterprise programs.

Google’s enterprise business consists of productivity apps like Google Docs and Gmail and the Google Cloud Platform, which includes its App Engine platform-as-a-service and its Compute Engine infrastructure-as-a-service. One important factoid in the write up was the assertion that Google’s cloud business and its applications business was generating about $200 million in the most recent quarter. Assuming that the figure is accurate, Google is on track to generate about $1 billion from its enterprise services. If the company ends the current fiscal year in the $60 billion in revenue range, the enterprise unit will make up one minute of 60 minutes of Google revenue.

The interesting numeric comparison is that Google’s $1B of enterprise revenues is compatible with 4 top CAD/PLM companies ($1-2B). At the same time, increased investments in hardware, wearable computers, cars and other physical devices can make Google enterprise execs to pay attention on what companies in CAD/PLM area are doing.

What is my conclusion? Google was puzzling around enterprise business already few years pushing and pulling services and offering, changing prices and strategies. Are we going to see next round of Google push in the enterprise? Will Google try to leverage Microsoft management crisis to capture few additional points of enterprise apps selling. Maybe Google will decide to invest money in CAD/PLM business to make their hardware programs more efficient? Who knows… These are just rumors and my thoughts…

Best, Oleg

One Response to PLM and Google enterprise numeric factoids

  1. Not important says:

    Cad/plm could be a good target for them
    dassault sytems would be the most suitable target because of the synergical technologies and the common customers they could target &
    Benefit from : Automotive, Aerospace etc

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