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PayPal the New Prize in Cloud Wars

Posted on 8.30.2016

Google's cloud computing business, where it currently trails the likes of both Amazon and Microsoft, may just receive a big vote of confidence as it appears it could sign a very well-known client in PayPal.

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PayPal is reportedly still evaluating other providers and is unlikely to make a major switch to another technology infrastructure around the 2016 holiday season as it is the single most important part of the year for the payment processing solution. PayPay, of course, can't afford a repeat of last year when its services experienced an interruption on Cyber Monday 2015. The downtime could have turned into a very costly mistake, particularly when you consider that PayPal processes nearly $11,000 worth of payment volume per second on average, which would obviously increase in multiples on a major shopping day like Cyber Monday or even Black Friday.

PayPal does have some existing business with AWS, including its Braintree and Venmo products, which the company acquired in 2013 (when PayPal was still part of eBay), so Google may not be the front runner as many expect. Ultimately this may just come down price.

While Google most certainly has a sizeable war chest (reportedly some $80 billion in cash), so does Amazon and it seems both companies aree more than willing and able to get in to a battle over pricing. Earlier this month, in fact, AWS dropped the price of its storage product by 47 percent, the 52nd time Amazon has reduced prices.

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