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Google Invests in a Long term Google Cloud Deal

Today, Google Cloud and The CME Group announced a 10-year contract to migrate CME’s futures and options markets to the cloud. A $1 billion investment from Google in CME is one of the deal’s components. Google, on the other hand, refused to specify how much the entire agreement was worth. This isn’t your typical transaction, says Philip Moyer, VP of strategic industries at Google Cloud, where Google assists the customer in moving workloads to the cloud.

“Rather, this is a demonstration by Google and CME that we’re truly dedicated to the long-term journey required to bring the most difficult portions of the financial services business to the cloud,” Moyer explained. He claims that the sale is complicated since CME has the most stringent security, latency, redundancy, and recovery criteria. The firms aren’t disclosing how the arrangement is structured regarding costs. Still, the idea is to roll it out in stages, starting with the simplest workloads with the shortest latency needs and then moving on to analytic data tooling.

Finally, in the third step, the corporations intend to migrate the most latency-sensitive workloads to the cloud. According to Moyer, this is a big thing, and if it lasts a decade, it will change the way financial services businesses like CME operate. Apart from the broad scale of the deal, the key question is where the $1 billion investment comes in, and Moyer says it’s all about demonstrating to CME that it, too, has skin in the game.

Non-voting shares are included in the investment. There are no board seats available, and the CME board is free to use the funds as it sees fit. However, according to Moyer, the investment is intended to demonstrate that Google is committed to the relationship’s long-term success.

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