Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google recently partnered with Ericsson (NASDAQ:ERIC) to develop new 5G and edge cloud solutions for telecom companies and enterprise customers.
Google already provides cloud services to Ericsson, one of the world’s top telecommunications equipment providers, but the new partnership will expand that relationship with the co-development of new services at Ericsson’s D-15 Labs in Silicon Valley, as well as a pilot program for edge enterprise applications with Telecom Italia.
These projects could help Google and Ericsson keep pace with their bigger rivals in their respective markets. Google ranks third in the cloud infrastructure market after Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), according to Canalys, while Ericsson and Nokia (NYSE:NOK) are roughly tied for second place in the telecom equipment market behind Huawei, according to Dell’Oro Group.
Strengthening the bonds between Google Cloud’s compute platform and Ericsson’s expanding 5G network makes strategic sense. As 5G networks deliver more data at faster speeds, telecom companies and enterprise customers will require more cloud computing power to process that information.
That marriage will make edge computing devices, such as Internet of Things (IoT) gadgets that rest on the “edges” of existing networks, more useful. They’ll also help edge computing services,…