Google Cloud Launches New Subsidiary Catering to Government Clients

Amy Larsen DeCarlo – Principal Analyst, Security and Data Center Services

Summary Bullets:

• A bit late to the enterprise party, Google Cloud is looking to play catch up on the government front with a new public sector business.

• The business will operate autonomously while selling the full suite of Google products.

Looking to capture a bigger share of the public sector IT sales and challenge fellow hyperscale rivals Amazon Web Services and Microsoft Azure, Google Cloud is launching a separate subsidiary to serve US government clients, which will have its own separate board of directors to be named later. The Google Cloud Public Sector arm will sell the full suite of Google services, including cybersecurity solutions to federal, state, and local government entities. Will Grannis, Google Managing Director and Chief Technology Officer, will oversee the new business at launch until a permanent CEO is named. Lynn Martin, a Google vice president, will head the US Public Sector sales organization.

With this new entity, Google Cloud is targeting one of the world’s largest consumers of IT. In 2021, the US federal government alone budgeted more than $90 billion for technology procurement. Google Cloud, which was late to courting enterprise clients in general, has made significant headway in both the private and public sectors in recent years. The provider has won contracts with the US Air Force, providing collaboration support and platforms for airline maintenance and flight simulation and training. The provider also counts the US Navy, the US Department of Veteran Affairs, US Department of Energy, and the US Postal Service, among others, as customers. Google Cloud also supports a number of state and local clients.

Google Public Sector is putting a big emphasis on its security capabilities as foundational for a zero-trust architecture, and the federal government is in the midst of a multi-year move toward the same.

Like its parent, Google Public Sector will function as a “partner-first” entity, leaning heavily on its ecosystem partners to provide consulting and professional services support. Key public sector integrator partners include Accenture Federal, Deloitte, and Mantech.

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