Google Cloud lands $1.2 billion ServiceNow deal

Cosmico - Google Cloud lands $1.2 billion ServiceNow deal
Credit: Google/ServiceNow, Inc.

Google Cloud has secured a major enterprise client in its intensifying competition with industry leaders Amazon Web Services (AWS) and Microsoft Azure. Alphabet Inc.’s cloud division has inked a deal valued at over $1 billion to provide cloud-computing services to enterprise software firm ServiceNow Inc., Bloomberg reported, further signaling Google Cloud’s growing influence in the market.

According to a person familiar with the deal, ServiceNow has committed to spending $1.2 billion over five years. While the company maintains relationships with multiple cloud providers, it declined to disclose specific contract values, and Google did not comment on the agreement.

This partnership is a notable win for Google Cloud, which has historically trailed AWS and Azure in enterprise adoption. But recent moves suggest a shift. In February, Salesforce Inc., long an AWS client, pledged $2.5 billion to Google Cloud services, signaling a growing trust in Google’s infrastructure. Earlier this year, OpenAI also became a Google Cloud customer.

Google Cloud, now the third-largest cloud provider globally, has become one of Alphabet’s most promising growth engines as the company’s core advertising business matures. In the second quarter, the cloud division posted $13.6 billion in revenue—a 32% year-over-year increase—buoyed by rising demand for artificial intelligence services and infrastructure.

Much of Google’s appeal lies in its deep investments in AI, which have helped it attract innovation-driven clients. The ServiceNow partnership is another indicator of this trend. The enterprise software firm, which builds tools to streamline business operations like IT and HR, disclosed Thursday that it has committed to $4.8 billion in cloud services through 2030.

The relationship may also be helped by a key personnel link: ServiceNow’s Chief Product Officer, Amit Zavery, is a former Google Cloud executive, joining ServiceNow in October 2024.

As more enterprises diversify their cloud strategies and seek cutting-edge AI capabilities, Google Cloud is increasingly positioning itself as a viable, even preferred, alternative to the traditional cloud giants. The deal with ServiceNow underscores the momentum Google is gaining in the enterprise space.

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