Google partnership on mobile cloud services drives up MobileIron shares

  • Google and MobileIron plan to launch a new cloud services store to allow customers to securely buy enterprise tools and services.
  • News of the partnership pushed MobileIron shares up as much as 14 percent on Tuesday.
  • The new store makes Google's cloud offerings more competitive with Amazon, which has had a similar software store since 2012.
Diane Greene, Google
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Diane Greene, Google

MobileIron, a provider of mobile security for businesses, jumped as much as 14 percent on Tuesday after announcing a partnership with Google that will allow companies to securely purchase and manage enterprise apps for employees.

The stock climbed as high as $4.60 and was trading up 5.2 percent to $4.26 as of Tuesday afternoon.

Google and MobileIron are launching a cloud services store that will help app developers with branding, billing, secure cloud access and analytics. A MobileIron spokesperson told CNBC that the store will likely launch in the second half of 2018, and will initially target phone companies like AT&T and Deutsche Telecom, which sell cloud services to their customers.

The partnership builds on Google's acquisition of Orbitera, a platform for cloud marketplaces, in late 2016.

The new store could make Google's cloud offerings more competitive with Amazon Web Services, which introduced a cloud software store in 2012. Google's cloud business, run by CEO Diane Greene, is currently a distant third behind Amazon and Microsoft Azure.

MobileIron, which has a market value of below $500 million, is flat over the past year, while shares of Google parent Alphabet have jumped 44 percent.