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Google to assist Saudi Aramco in creating cloud infrastructure for Saudi ArabiaMENA

Google to assist Saudi Aramco in creating cloud infrastructure for Saudi Arabia

Google (GOOG) announced a strategic partnership with Saudi Arabia’s state-owned oil company, Saudi Aramco, to develop a cloud infrastructure. The “high performance, low-latency” cloud service will help the oil-dependent country adjust to the rapidly accelerating digital adoption in the Gulf region, spurred by Covid-19.

In a statement made last Monday, Saudi Aramco predicts a market opportunity for themselves and Google worth up to $10 billion by 2030. Google believes investing in the development of a digital cloud infrastructure will help Saudi businesses grow and scale their operations and be more competitive at home and abroad.

Google has been eyeing this opportunity with Saudi Arabia since 2018. Its main competitors in the digital cloud infrastructure market are Microsoft (MSFT) and Amazon (AMZN). Google currently lags behind both when it comes to international regions served and availability zones.

why it matters
As the cloud infrastructure industry becomes more competitive in the Middle East, the services provided by its providers is sure to get only better. This would, in turn, create a stronger value proposition to companies that have been lagging in the cloud adoption trend, and finally get them to be more "digitized".