Google Cloud, VMware Cut Jobs

But this cloud news roundup features not-so-depressing news, too, from Oracle and MSP AllCloud.

Kelly Teal, Contributing Editor

February 19, 2020

5 Min Read
Layoffs, Job Cuts, Unemployed

The cloud industry is constantly changing and sometimes that means job losses; other times, it means new product introductions. This roundup covers both fronts as Google Cloud, VMware and AllCloud each make news this week for different reasons.

Layoffs Hit Cloud Sector

Some employees at Google Cloud and VMware are on the hunt for new jobs.

News broke this week that Google Cloud, despite its recent strong earnings performance, will cut about 50 jobs. Google will try to move the affected staff into other jobs at the company. Among the casualties is Tariq Shaukat, Google Cloud industry products and solutions president, according to reports of a leaked memo verifying his departure.

At least one analyst speculated, via Silicon Valley Business Journal, that Google Cloud CEO Thomas Kurian, who’s been in charge for a year now, wants to concentrate on large enterprises. CNBC noted, too, that Google Cloud is looking to land more business in markets outside the United States.

Google Cloud’s growth will rely heavily on the indirect channel. In a Feb. 11 presentation to investment bank Goldman Sachs, Kurian discussed ways to broaden customer reach with the help of a range of partners, including MSPs, REITs, ISVs, VARs and more. He also highlighted how the channel buoyed Google Cloud in 2019 compared to 2018:

  • 190% year-over-year increase in partner-influenced GCP revenue.

  • 13x increase in new customers won by partners in the first half of 2019 over the first half of 2018.

  • 85% year-over-year increase in Google Cloud partner-sourced deals.

  • 300% year-over-year increase in the number of Google Cloud-certified partners.

When Channel Futures reached out to Google Cloud for comment on the layoffs, we received the same statement as other media:

“We recently communicated organizational changes to a handful of teams that will improve how we market, partner, and engage with customers in every industry around the globe. We made the difficult, but necessary decision to notify a small number of employees that their roles will be eliminated. We’re working with our internal mobility teams across the company to help those affected by this change, and hope to find them new roles within the company. We are grateful for everything they have accomplished and their commitment to Google Cloud.”

Meanwhile, cloud infrastructure provider VMware said in a late January regulatory filing with the state of California that it will again reduce its headcount — this after a significant round last month.

Palo Alto Online reported last Friday that another wave of people – 211, to be exact – will get the axe; that number includes 10 executives in the internet of things and edge computing groups.

The layoffs will start in April. VMware attributes them to “regular workforce rebalancing,” according to reports.

—Channel Futures news editor Edward Gately contributed to the reporting on this article

Quick Note: Google Cloud Launches in Korea

In separate Google Cloud news, the company has debuted its …

… eighth cloud region in Asia, this time in Seoul.

This marks Google Cloud’s introduction to the Korean market.

“The launch of our new Seoul region … brings lower latency access to data and applications for both local and global companies doing business in South Korea,” Julia Broodney, geographic expansion product manager, and Rich Harshman, managing director, Asia Pacific, wrote in a Feb. 17 blog. “The new Seoul region is comprised of three zones from the start, enabling Google Cloud customers and partners to run high availability workloads and store their data locally.”

AllCloud Preps Salesforce Classic Users for Lightning Experience

As the end of Salesforce Classic looms, managed services provider AllCloud seeks to help enterprises move to the new Lightning Experience, which went live last month.

Salesforce Lightning Experience is a modern interface that better visualizes data. Clients still may turn to Salesforce Classic, for now, but they miss out on Lightning features including voice, news and insights, and auto-fill, capabilities Salesforce says drive growth and productivity.

AllCloud, a Salesforce platinum consulting partner, seeks to fill the gap between Salesforce Classic and the new platform with its Lightning Migration Assessment (LMA) service, unveiled this week.

“It’s only a matter of time before Salesforce Classic is retired, and Salesforce product owners will be left scrambling to migrate against the clock,” Peter Nebel, vice president of strategy and practice development at AllCloud, said. “In most cases, this will be more than just a simple click of a button; in fact, migration can be a complex project that involves serious business changes.”


AllCloud’s Eran Gil

Thus, AllCloud is offering its LMA expertise to Salesforce Classic customers. The service includes in-depth exploration of the Salesforce environment, plus a readiness backlog, project plan and a road map to ensure migration without functionality loss.

“As the Salesforce ecosystem continuously evolves, clients are looking for partners to build a long-term strategy that provides ongoing innovation,” Eran Gil, AllCloud CEO, told Channel Futures. “This includes the ability to leverage the latest technologies, including Salesforce Lightning. With the future of the platform dependent on Lightning Experience, AllCloud enables organizations to make the move seamlessly, so they can continue to embrace the latest technology and innovate at an enhanced pace.”

AllCloud serves enterprises in the United States, Canada and EMEA.

Oracle Targets Data Science, Expands Microsoft Partnership

Oracle recently made two key cloud-related announcements. Here’s a brief look:

  • Availability of Oracle Cloud Data Science Platform. This helps enterprises to build, train, manage and deploy machine-learning models for data science projects. The platform allows for shared projects, model catalogs, team security policies, reproducibility and auditing.

  • Expansion of Microsoft Interoperability Partnership. The companies now share an interconnect location in Amsterdam for enterprise cloud interoperability to Europe. Users may share data across applications running in Microsoft Azure and Oracle Cloud. The facility in Amsterdam joins interconnected regions in Toronto; Ashburn, Virginia; and London, and is part of last year’s broader Oracle-Microsoft cloud interoperability partnership.

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About the Author(s)

Kelly Teal

Contributing Editor, Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC.

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