July 25 – Alphabet’s Google (GOOGL) reportedly secured a major cloud deal with ServiceNow (NYSE:NOW), valued at around $1.2 billion over five years, according to Bloomberg report.
The agreement reflects rising enterprise demand for scalable cloud infrastructure, and it adds momentum to Google’s ongoing push to expand its footprint in enterprise services.
ServiceNow disclosed in a regulatory filing on Thursday that its total cloud services commitments stand at $4.8 billion through 2030. While the company works with multiple cloud providers, it didn’t name the value of specific contracts. Still, the size of this agreement suggests Google is playing a larger role in ServiceNow’s cloud strategy moving forward.
For Google, this potential $1.2 billion inflow boosts its efforts to grow in the competitive cloud market, where Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) remain key rivals.
The development signals steady demand for hybrid cloud solutions, even as broader enterprise tech spending shows signs of selectivity.
Both companies’ shares could respond to the news as investors digest the implications for long-term revenue streams.
This article first appeared on GuruFocus.