Google Wins Cloud Deal from Elon Musk’s SpaceX for Starlink Internet Connectivity

Key Points :

-Google confirmed that its cloud division had won a contract to supply computing and networking services to Elon Musk's SpaceX to help the latter's Starlink satellites provide internet service.

-As part of a seven-year contract, the Starlink satellite internet will rely on Google's private fiber-optic network to easily connect to cloud services.

On Thursday, Google reported that its cloud division had won a contract to supply computing and networking services to SpaceX, Elon Musk's privately owned space development business, to assist in delivering internet service through its Starlink satellites.

Land stations connected to SpaceX's Starlink satellites will be installed at Google data centers in the second half of this year, to deliver quick internet access to businesses.

The agreement is a win for Google, which is vying for market share in the fast-growing cloud computing market against Amazon and Microsoft.

Investors are betting on Google's emerging cloud business to help the company prosper if its advertising business slows. Despite accounting for just 7% of parent company Alphabet's overall revenue in the first quarter, Google's cloud business increased nearly 46% year over year, compared to 32% for Google's advertisement services.

Investors are betting on Google's emerging cloud business to help the company prosper if its advertising business slows. Despite accounting for just 7% of parent company Alphabet's overall revenue in the first quarter, Google's cloud business increased nearly 46% year over year, compared to 32% for Google's advertisement services.

It's also a unique deal for Google — like every other cloud provider — since it heavily depends on Google's internal network, which links data centers, rather than merely outsourcing computing resources or data storage to these data centers.

"This is a one-of-a-kind piece. Bikash Koley, Google's head of global networking, said, "I don't think something like this has ever been done before." "The true potential of this technology became immediately apparent. It's a powerful mix when you combine cloud with universal, stable connectivity."

"They chose us because of the consistency of our network, as well as its delivery and reach," said Thomas Kurian, Google's cloud group's CEO.

With the launch of general-purpose computing and storage tools from its Amazon Web Services division in 2006, Amazon popularized the public cloud market. In 2012, Google launched its computing operation. However, Google has spent money building a private fiber-optic network to link its data centers over the last two decades, according to Koley.

With the rise of 5G networking, cloud providers are gradually focusing on the telecommunications industry. For example, Amazon announced that Dish would use AWS infrastructure to provide 5G service to customers.

There is no need for cell towers in SpaceX's case. Customers' computers would now communicate with satellites, which will then link to Google data centers. Customers can use Google's cloud services to run applications quickly within those data centers, or they can transfer the information to other companies' geographically close services, allowing for low latency and little lag. The data is then routed via Google data centers to satellites and finally to end-users.

According to an individual who refused to be identified when negotiating confidential terms, the contract could last seven years.

Consumers living in areas with limited internet access, as well as companies and government organizations working on projects in remote areas, can find Starlink's helpful service, according to Kurian. He believes that allowing Starlink to use Google's cloud network would encourage companies to install applications in Google's cloud to take advantage of the high speeds.

Starlink collaborates with several cloud providers, including Google.

Microsoft announced in October that it was collaborating with SpaceX to introduce Starlink internet access to Azure cloud data centers that customers could deploy anywhere. According to a source familiar with the situation, SpaceX will continue to use Google data centers in that case.

(Data will fly from the customer's Azure modular data center to Google's data center through the Starlink satellite, then out to other cloud providers — and back again. In an email to CNBC, a Microsoft spokesperson said, "Our new collaboration with SpaceX Starlink offers high-speed, low-latency satellite broadband to expand our Azure capabilities with worldwide satellite connectivity and unblock cloud computing in more scenarios." "Efforts to extend those scenarios are currently ongoing, and we will have more to share in the coming months.")

According to the source, SpaceX will initially install the ground stations at Google data centers in the United States, but the company plans to grow globally.

According to CNBC, SpaceX is one of the most profitable privately owned start-ups globally, having earned capital at a $74 billion valuation in February. In 2015, Google invested $900 million in SpaceX. It is one of the most profitable privately owned start-ups globally, earning capital at a $74 billion valuation in February. In 2015, Google invested $900 million in SpaceX. Over 1,500 Starlink satellites have been launched into orbit by SpaceX, and the company announced last week that more than 500,000 people have requested or paid a deposit for the internet service.

Reference : https://www.cnbc.com/2021/05/13/google-cloud-wins-spacex-deal-for-starlink-internet-connectivity.html

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Google Wins Cloud Deal from Elon Musk’s SpaceX for Starlink Internet Connectivity