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Chronicles

The story behind the story

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Interview with Thomas Kurian, CEO of Google Cloud, on rearranged priorities due to the COVID-19 crisis, competition, his evolving strategy around M&A, and more

Locked in an uphill battle against AWS and Microsoft in infrastructure cloud computing, Google Cloud has made the adjustments needed …

Protocol Tom Krazit

Context & Ripple Effects

A year into the job, Kurian sat for this Protocol interview at a moment when the playbook he laid out in his first-year interview on open source, AWS, and expanding Google Cloud's sales teams was being stress-tested by a pandemic. The through-line across the coverage is a distant third hyperscaler reorganizing under pressure — first on go-to-market, now on crisis-era priorities and an M&A stance Kurian describes as evolving.

First-order effects

  • Google Cloud's near-term priorities shift toward what COVID-era customers need, with Kurian explicitly rearranging the unit's focus rather than defending the existing roadmap.
  • Kurian's signal that M&A thinking is evolving puts potential acquisition targets and partners on notice that Google Cloud's inorganic options are open in a way they previously weren't.

Second-order effects

  • AWS and Microsoft face a competitor using the crisis as a repositioning window — the same 'uphill battle' framing Kurian has used against AWS since his earliest interviews, now with a crisis forcing faster iteration.
  • The cost and efficiency discipline Kurian describes here is the groundwork for the milestone covered three years later, when Google Cloud finally turned a profit in Q1 2023 partly through data-center efficiency gains.

Third-order effects

  • The arc from this interview through the later Q&As — where Kurian argues AI offers a reset in competition and Google Cloud builds infrastructure for AI agents — suggests crisis-era reprioritization became the hinge between an infrastructure also-ran and an AI-era challenger.
  • If the pattern holds, hyperscale competition stops being decided by infrastructure share alone and by whoever converts disruption windows — pandemic, then AI — into priority shifts fastest.

The trend: Google Cloud's trajectory from distant third hyperscaler to AI-infrastructure contender runs through repeated crisis-driven priority resets under Kurian, each one narrowing the gap AWS and Microsoft opened.

Discussion

  • @tomkrazit Tom Krazit on x
    He also delivered a classic that-report-is-inaccurate-but-I-won't- say-how response to questions about @theinformation's report on a 2023 deadline to make Google Cloud #1 or #2 in the cloud market
  • @protocol @protocol on x
    In an exclusive interview, Google Cloud CEO Thomas Kurian detailed some of the company's COVID-19 efforts, addressed concerns about whether Google is in the enterprise market for the long haul, and discussed, carefully, his evolving M&A strategy. https://www.protocol.com/...
  • @mliebow @mliebow on x
    Whether your industry or solution is experiencing a surge in demand, or the absence of demand is giving you a much needed window to modernize old IT systems, #Cloud is the only way forward. Good Q&A with Kurian of GCP on current events and next steps. https://www.protocol.com/...