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Tbh I do not understand why would a company keep their data on a service like Google Cloud
Because accountants mostly.
For large businesses, you essentially have two ways to spend money:
This leaves companies in a slightly odd spot where from an accounting standpoint, it might look better on the books to spend $3 million/year on cloud stuff than $10 million every 5 years on servers
Excellent explanation, however, technically it does not constitute an "odd spot." Rather, it represents a "100% acceptable and evident position" as it brings benefits to all stakeholders, from accounting to the CEO. Moreover, it is noteworthy that investing in services or leasing arrangements increases expenditure, resulting in reduced tax liabilities due to lower reported profits. Compounding this, the prevailing high turnover rate among CEOs diminishes incentives for making significant long-term investments.
In certain instances, there is also plain corruption. This occurs when a supplier offering services such as computer and server leasing or software, as well as company car rentals, is owned by a friend or family member of a C-level executive.
Been around, have you?
Some might say that.
This guy corporates
I read OPs comment as being a question about using a company with a reputation like Google rather than using a cloud service, but I could be wrong.
Money. It's a lot cheaper to let somebody else maintain your systems than to pay somebody to create and maintain your own, directly.
Flexibility is a huge one too. Much easier to upscale / downscale.
If you are a small company then yes. But i would argue that for larger companies this doesn't hold true. If you have 200 employees you'll need an IT department either way. You need IT expertise either way. So having some people who know how to plan, implement and maintain physical hardware makes sense too.
There is a breaking point between economics of scale and the added efforts to coordinate between your company and the service provider plus paying that service providers overhead and profits.
If coordinating with service providers is hard for a firm, I would argue the cost effective answer isn't "let's do all this in house". Many big finance firms fall in this trap of thinking it's cheaper to build v buy, and that's how you get everyone building their own worse versions of everything. Whether your firm is good at the markets or kitchens or travel bookings, thinking you can efficiently in-source tech is a huge fallacy.
it is not about it being hard. It simply creates effort to coordinate. And this effort needs to be considered. If you do things externally that means there is two PMs to pay, you need QMs on both sides, you need two legal/contract teams, you need to pay someone in procurement and someone in sales...
I agree with you that doing software inhouse when there is good options on the market is usually not a good idea. But for infrastructure i don't see there to be as much of an efficiency loss. Especially as you very much need experts on how to set things up in a cloud environment and you better look carefully at how many resources you need to not overpay huge amounts.
Except for the larger companies you still need a bunch of trained experts in house to manage everything.
Yes, and they're the company's resources so they theoretically do what's best for the company as opposed to hoping Google or (godforbid Microsoft) does it.
The money gets paid either way, and if you have good people it's often the right call to keep it in house but inevitably somebody read a business book last year and wants to layoff all the IT people and let Google handle it "for savings". Later directors are amazed at how much money they're spending just to host and use the data they used to have in-house because they don't own anything anymore.
There are still benefits - cloud DevOps tools are usually pretty slick, and unless your company has built a bunch of those already or is good about doing it, it might still be worth it in terms of being able to change quickly. But it's still a version of the age old IT maxim to never own or build it yourself when you can pay someone a huge subscription and then sue them if you have to. I don't like it, but it's pretty much iron in the executive suite.
As a result, IT departments or companies spend much more than half of their time - totalling years or decades - moving from whatever they were using to whatever is supposed to be better. Almost all of that effort is barely break-even if not wasted. That's just the nature of the beast.
It's absolutely not. If you are at any kind of scale whatsoever, your yearly spend will be a minimum of 2x at a cloud provider rather then creating and operating the same system locally including all the employees, contracts, etc.
It very frequently is not.
No I meant that Google Cloud is very invasive. Why not to use a more ethical provider?
Why do you think it's invasive? How do you quantify which providers are less invasive?
Because they've never read the terms of the paid for services.
Enterprise Google products != free Gmail.
Lots of comments here conflating consumer google accounts with google cloud.
Google is one of the most privacy invasive companies in the world. And judging by encryption standards, terms of service and privacy policies
Are you sure you've not just read bad stuff without verification on the internet and feel the need to chime in on something you don't fully understand?
Yes. I read Google's policies many times.
Me too as a programmer that uses Google cloud to store government information. Which bit of the policy says they are going to access your data, shouldn't take you long to link it to me if you read them as much as you say. Unless what you're actually doing is spreading misinformation and bullshit.
Bruh, Google doesn't offer any enterprise services, duh. Every single thing they do follows the rules of free Gmail!
Then please, point out the specific policies you are referring to. And don't bother with consumer services. I'm looking for the enterprise services that a business would use. So which policies do you take issue with?
and you know the security standards that are achievable on google cloud entirely negate your point right? their cloud offering is a totally different beast
My company used to do this. Its cause we were incredibly stupid.
G Suite is a legitimate option for small-medium businesses. It's seen as the cheaper, simpler option versus Azure. I usually recommend it for nonprofits as they have a decent free option for 501c3 orgs.
Money and Time – It's rather easier/cheaper for Organizations nowadays to outsource a part of infra to Cloud service providers.
I meant Google Cloud, not cloud outsourcing itself