Marketo will tap into Google’s Cloud Platform (GCP), including its G Suite, data analytics, and machine learning platforms. Marketo had previously handled those functions through its own internal server operations.
Marketo provides “engagement marketing software,” and counts more than 6,000 enterprise customers. Those customers include Panasonic, GE Healthcare, and Google. Competitors include Salesforce and Oracle’s Eloqua.
Reports indicate the deal is for six years, and will include “tens of petabytes of customer data.” The migration is expected to be completed by the end of next year.
The deal with Google will allow Marketo to better integrate marketing and advertising operations.
“This alliance will simplify the technology landscape for the marketer and enable them to more effectively listen, learn, and engage with buyers across all digital channels, including digital ads,” the company noted. “In addition, it will provide the scale, reliability, and security required for enterprises to conduct business in today’s digital world.”
Marketo went private last year after it was acquired by Vista Equity Partners in a deal valued at nearly $1.8 billion.
Google Cloud Boost
As part of the agreement, Google plans to increase its usage of Marketo’s Engagement Platform “to further connect with its customers.”
The agreement is a solid win for Google’s Cloud Platform, which is currently looking to gain market share against larger rivals Amazon Web Services (AWS) and Microsoft’s Azure public cloud. Reports differ slightly on market dominance, but AWS controls around 40 percent of the global public cloud revenue followed by Azure at around 25 percent.
Google is a distant third among public cloud providers, with a market share of less than five percent. However, Google CEO Sundar Pichai recently said GCP closed three-times as many deals in Q2 worth more than $500,000 compared with the previous year.
Google last week introduced plans to trial tiered access for GCP interconnect services that will trade performance for a lower cost. The trial will see the introduction of a Standard Tier that will slide in under the legacy connectivity option that is now dubbed Premium Tier.
Enterprise Strategy Global analyst Dan Conde said Google’s networking reach and control allows the company to diversify its service offerings.
“I think the key thing is that Google has an extensive global network that they control and run on their own,” Conde said. “So given that it provides benefits, they want to give customers choice – get the extra benefits (at a standard price) or if you don’t need all those extras, you can get a break on the price.”