Google just bought Apigee

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Google has decided to shell out a whopping $625 million to acquire Apigee, a cloud software company. This move is further indication that Google is going all out to be the leader in cloud services.

Google just bought Apigee
Apigee Nasdaq debut in 2015

The news which hit Wall Street about six days ago came a day after Google and Box Inc, an online storage company, said they were going into a partnership that would allow Box inc clients to have full access to Google Docs.

Google Docs is a suite of office tools that includes word processors, spreadsheets and many other tools that big corporate offices, businesses and individuals find useful in their everyday workday.

Announcing the deal in Google Cloud Platform Blog, Diana Greene, Senior Vice President at Google said:

Today, we’re excited to announce that Google has entered into a definitive agreement to acquire Apigee, a provider of application programming interface (API) management. APIs — the mechanism developers use to interface and integrate with outside apps and services — are vital for how business gets done today in the fast-growing digital and mobile marketplace. They’re the hubs through which companies, partners and customers interact, whether it’s a small business applying online for a loan or a point of sale system sending your warranty information to the manufacturer.”

This is a big turn-around for Apigee Inc, a company that was founded just two years ago and only got listed on Wall Street last year in an IPO of just $87 million. Though at the end of the day’s business, the company was valued at $485.8 million.

Google just bought Apigee
CEO of Apigee, Chet Kapoor

Apigee is known primarily as a software company that creates tools that helps companies to effectively utilize their online apps and other digital content stored in the cloud.

The service Apigee specifically offers can be summarized as follow: their cloud services  helps companies to manage softwares that link apps to the Internet and to each other; which in turn makes it easy for developers to access the softwares. The net effect is that old softwares can be tweaked to make them better or new ones created; making it easy for consumers to have access to the companies either through smartphones or the web.

For such a young company to come such a long way in a short time, it is clear Apigee is doing something right by any standard.

Google just bought Apigee
Google Cloud Platform

Like earlier stated, Google is clearly showing its bullish side in the cloud services niche and wants to be taken seriously in cloud services like the leaders Microsoft and Amazon.

And Google seems to be in a hurry to reach the top as far as cloud services are concerned. Is there something they know and are hiding from the world?

Google just bought Apigee
Brian Stevens, Vice President in charge of Google Cloud Platform

Consider this then: back in July, Google spend an undisclosed sum (everybody body assumes the amount of money that exchanged hands was huge) to buy Anvato, a cloud storage software that provides tools for media houses to edit online videos.

Other services provided by Anvato include infrastructure to handle pay per view, insert ads in videos, beam live streams and how to monetize contents. Basically, the complete package for serious media company to organize and take care of all aspects of the online media business.

Google’s strategy in having a bigger pie of the cloud business is simple: buyout smaller tech firms already doing well with the potential to grow and integrate them into Google Cloud Platform.

If Google repeats the strategy often enough and with careful management, who knows, before long Google Cloud Platform would be the undisputed leader in that niche. The way Google Search is.

 

Image credit: mercurynews.com; gigaom.com; idgconnect.com; geekwire.com

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