Google Lands Inside Nearly Every Major Fortune 100 Company
Alphabet's Google has made significant inroads into Microsoft's customer base, with nearly 90% of Fortune 100 companies using Gemini Enterprise. This is a major coup for Google, which has traditionally struggled to compete with Microsoft at the layer where enterprise software is sold: integration, procurement, and consulting.
The key to Google's success lies in its partnership with Accenture, which will place forward-deployed engineers inside customer operations and expand Gemini training across Accenture's workforce. These engineers are trained on Google's stack, not hired directly by Google, and the arrangement is not exclusive, as Accenture continues to work with Microsoft, OpenAI, Anthropic, and NVIDIA.
Google's cloud revenue reached $24.77 billion in the last quarter, with a backlog above $460 billion at the end of Q1. While Microsoft's Azure crossed $100 billion in annual revenue, Google Cloud's growth rate is now well ahead of Azure's 43% pace for other cloud services.
Alphabet trades at a trailing P/E of about 17x, versus roughly 28 for Microsoft. The market is pricing Google as the challenger it is, and experts believe that this partnership should convert into revenue for Google.