Tech

Google Cloud, on a buying spree, acquires IT company Cornerstone Technology

Key Points
  • Google Cloud has acquired Cornerstone Technology as it targets the mainframe.
  • CEO Thomas Kurian has been on a buying spree in attempts to catch up with cloud leaders Amazon and Microsoft.
Thomas Kurian, CEO of Alphabet's Google Cloud, speaks at the Google Cloud Next conference in San Francisco on April 9, 2019.
Michael Short | Bloomberg | Getty Images

Google Cloud CEO Thomas Kurian has purchased yet another company, and this time it's targeting mainframe customers.

Google Cloud announced Tuesday that it has acquired Cornerstone Technology, which Google says will migrate customers' mainframe workloads to Google Cloud.

The company didn't disclose the deal price.

"For decades, companies have relied on a mainframe architecture to run their mission-critical workloads, but it often holds developers back from taking advantage of new technologies that enable them to innovate more quickly," the company said in a blog post. "Cloud computing presents the opportunity to modernize your applications and your infrastructure, resulting in better capabilities and allocation of resources so your organization can focus on your core business."

The Cornerstone acquisition comes as Kurian rounds out his first year at the helm of Google Cloud. In that time, he's persuaded Google parent company Alphabet to go on a buying spree that's included several acquisitions and hires in an attempt to catch up with cloud leaders Amazon and Microsoft.

The company is undergoing a restructuring of its Cloud group internally, which includes eliminating some roles, a Google spokesperson confirmed to CNBC last week. The restructuring is primarily meant to realign focus on international markets.

Google's cloud business, which broke out its revenue for the first time in its fourth-quarter 2019 earnings, generated $8.92 billion in revenue in fiscal 2019, with $2.61 billion generated in the fourth quarter. That compares with 2018 revenue of $5.84 billion for the cloud business, with $1.71 billion generated in the fourth quarter of that year.

The latest acquisition will help the company "modernize" customers' infrastructure and applications on Google Cloud, the company said in its blog post. It will be part of the company's "professional services organization."

Correction: A previous version of this story incorrectly called Cornerstone Technology a mainframe company.

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