Alphabet’s (GOOGL) Google landed a key role in the Spanish conglomerate Ilunion’s digital transformation, using the opportunity to demonstrate its cloud computing prowess. Alphabet operates a broad portfolio of businesses and Google is its largest unit, housing its cloud and advertising businesses.
Together with SAP (SAP AG), Google migrated Ilunion’s technological infrastructure to the cloud in just a few months, despite the stumbling blocks imposed by the COVID-19 pandemic. SAP, which develops enterprise software to manage business operations and customer relations, provides business management solutions to 17 production environments across Ilunion.
Ilunion operates a diverse business portfolio that spans six segments and more than 50 business lines. It has a staff of more than 35,000 people. Google describes the Ilunion project as Spain’s largest cloud migration ever.
“The company expects it to bring greater flexibility, scalability, cost reduction, process efficiency, and speed of adaptation to change,” Google said about Ilunion’s cloud migration.
SAP has become such an important cloud partner that Google recently built an exclusive data center for SAP in Frankfurt.
As Google celebrated the Ilunion cloud migration milestone in Spain, it also welcomed a French government announcement about the cloud. According to a Reuters report, France would permit Google and Microsoft (MSFT) clouds to store sensitive government and corporate data in France if they would agree to partner with a French company. (See Alphabet stock analysis on TipRanks)
Monness analyst Brian White reiterated a Buy rating with a $3,000 price target on Alphabet stock. White’s price target suggests 31.07% upside to the current price.
“We believe Alphabet is well positioned for a continued recovery in digital ad spending in 2021,” noted White.
Consensus among analysts on Wall Street is a Strong Buy based on 26 Buy and 2 Hold ratings. The average analyst price target of $2,778.32 implies 21.38% upside potential to current levels.
GOOGL scores a 9 out of 10 on TipRanks’ Smart Score rating system, implying the stock is likely to outperform the market.