Google triumphs cloud contract from Elon Musk’s SpaceX for Starlink internet connectivity

Google triumphs cloud contract from Elon Musk’s SpaceX for Starlink internet connectivity

Google announces on Thursday its cloud division triumphs a contract to provide computing and networking resources to SpaceX. Elon Musk’s secretly held space-development firm, in order to help provide internet service via its Starlink satellites.

SpaceX will establish surface stations at Google data centers that link to SpaceX’s Starlink satellites. This is with an eye on the way to offering fast internet service to businesses in the latter half of this year.

The contract signifies a victory for Google as it works to take a stake from Amazon and Microsoft in the rapidly growing cloud computing industry.

Investors are calculating on Google’s promising cloud business to improve growth in the incident that its marketing business decelerates down. While Google’s cloud business provided only 7% of parent firm Alphabet’s total returns in the first quarter, it increased nearly 46% year over year. This is in comparison with an expansion of 32% for Google’s marketing services.

It is also an uncommon type of contract for Google — or any other cloud supplier. This is because it depends greatly on Google’s core network that links data centers. Rather than merely subcontracting tasks like computing power or data storage to these data centers.

“This is one of a type. I do not suppose something like this has been done earlier.” Says Bikash Koley, Google’s chief of global networking. “The genuine capability of this technology turns out to be very evident. The power of blending cloud with comprehensive secure connectivity, it’s a very effective blend.”

“They selected us since of the excellence of our network and the delivery and reach of our network,” says Thomas Kurian, CEO of Google’s cloud unit.

Cloud suppliers have progressively concentrated on the telecommunications business, especially with the rise of 5G connectivity. Last month, for instance, Amazon says Dish would use AWS infrastructure in order to provide a 5G service to customers.

In SpaceX’s case, there is no requirement for cell towers. Instead, clients’ gadgets will connect to satellites, and then the satellites will network to Google data centers. Within those data centers, consumers can run applications rapidly applying Google’s cloud services. Or they can transmit the data to other corporations’ services that are physically close. This enables low latency so there’s negligible lag. Statistics then comes right back via the Google data centers to satellites, and then down to end customers.

The contract can last seven years, according to an individual who declines to disclose his name during the discussion under confidential conditions.

Starlink’s service may be important for customers residing in places with inadequate internet access, as well as companies and government groups running missions in isolated areas, Kurian says. He expects that having Starlink tie on Google’s cloud network will take the lead companies to install applications within Google’s cloud. This is in order to take benefit of high speeds.


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