Congratulations! Your company just acquired or merged with another organization, beginning an important new chapter in its history. But like with many business deals, the devil is in the details — particularly when it comes to integrating the two companies’ cloud domains and organizations. In this blog post, we look at how to approach mergers and acquisitions (M&A) from the perspective of Google Cloud. These are the best practices that your Google Cloud Technical Account Managers follow — or that we recommend you follow if you plan to perform the integration yourself.
Although there are various M&A scenarios, here are the two most common ones we will focus on:

• Both entities engaged in the M&A have some presence on Google Cloud and are looking for some level of integration
• Only one of the entities has a presence on Google Cloud, and is looking at best ways to work together

Depending on your situation, your approach to integrating the two companies will vary substantially.

When both companies have a Google Cloud presence

In the first scenario, let’s assume company A is acquiring company B. Prior to the M&A, both companies have their own Google Cloud Organizations — the top level structures in the Google Cloud resource hierarchy — and have one or more billing accounts associated with them. There are also various Folders and Projects below each Google Cloud Organization. In this scenario, here are the key questions to ask:

• How do you plan to integrate/consolidate two distinct Google Cloud Organizations?
• How do you plan to organize the billing structure?
• How do you handle Projects under the two Organizations?
• What is the identity management strategy for the two Organizations?

For each of these key questions, go ahead and formulate a detailed plan of action. If you have access to the Technical Account Manager service through Google Cloud Premium Support, you can reach out to them to further develop this plan.

Understanding Google Cloud Organizations

From an organizational integration standpoint, when each entity in an M&A has its own Google Cloud Organization, you have various options: no integration, partial, or full.

No integration – When company B operates as an independent entity from company A, no migration is required. One caveat is if company A has negotiated better pricing terms/discounts and support packages with Google Cloud. In that case, you can sign an affiliate addendum by working with your Google Cloud account team to help unlock the same benefits for company B.

Partial integration – Some projects move over to company A from company B and others stay with Company B. There can be some shared access between the two companies and each of the organizations can continue to use their existing identity providers. This can be a self-serve or a paid services engagement with Google Cloud depending on the complexity of the two companies and how many project migrations need to take place between them.

Full integration – Company B is fully incorporated into company A. This means you go through a full billing, Google Workspace identity and project migration from company B into company A. This can be a complex process and we highly recommend engaging your Google Cloud account teams to scope out a paid services engagement to go through this transition.

Planning your project migration

No matter what you want your end state to look like, project migration requires careful planning. Again, if you have an assigned Technical Account Manager, please reach out to them to ensure that you have a conversation around best practices before starting this migration.

If you’re taking a self-service approach, at a high level, we recommend leveraging the Resource Manager API to manage your project migrations. Do keep in mind that there are several prerequisites and required permissions documented here that need to be assigned before going down this path.
In addition, please be sure to read the billing and identity management considerations below to ensure that you are covering all of the bases associated with such a migration, as your choices can fundamentally alter your Google Cloud footprint.

Billing considerations

When deciding how to structure your Organizations and billing accounts, our recommendation is to always limit the number of Organization nodes and use the Folder structure to manage departments/teams within it. Creating additional Organization nodes is only advised in cases where you require a level of isolation for certain Projects from central administration for a specific business reason, for example, if the company being acquired already has their own Organization node and there is a business justification to let it operate as a standalone entity.

Warning: If you have multiple Organization nodes, be aware that you will not have central visibility across all your organizational resources, and that policy management across different Organization nodes can be cumbersome. You will also have to manage multiple Workspace accounts and manage identities across them, which can be difficult, especially when operating at scale.

From a billing account management perspective, our recommendation is to create one central billing account that lives within the Organization node with tags and labels incorporated for additional granularity. However, there are a few business cases which warrant the creation of additional billing accounts such as:

• You need to split charges for legal or accounting purposes
• Invoices are paid in multiple currencies
• You need to segregate usage to draw down on a Google Cloud promotional credit
• Subsidiaries need their own invoice

Keep in mind that committed-use and spend-based discounts and promotional credits cannot be shared across billing accounts and are provisioned on a per-billing-account basis. As such, more billing accounts can make it harder to leverage these discounts and credits.

Identity management

As you might expect, merging two entities has identity management implications. Cloud Identity is the solution leveraged by Google Cloud to help you manage your user and group identities. Even if the acquired company only uses the productivity products that are part of Google Workspace, the identities would still be managed by Cloud Identity.

Google Workspace considerations

To move large amounts of content into a Google Workspace domain, we recommend one of three options, depending on your end goal and data complexity:

• For general migrations: Leverage Google Workspace Migrate to move data into your Workspace domain from either another Workspace domain or a third-party productivity solution
• For manual migrations: Use the Export tool to move your organization’s data to a Cloud Storage archive so you can selectively download exported data by user and service
• For complex Google Workspace scenarios: Speak with your Google Cloud Technical Account Manager about the possibility of using a custom scoped engagement to merge two Google Workspace environments without business interruption

When only one company is on Google Cloud

Now, let’s consider the scenario where only company A has a presence on Google Cloud but company B does not. The approach you take to integrate the two organizations largely depends on your desired end state — full, partial or no integration.
If the plan is to eventually integrate company B into company A, your approach here will have a lot of similarities with the ‘full integration’ option mentioned above — just at a later point in time.
You may also run into a scenario where company B has a presence on an alternative cloud platform and you need to migrate resources into or out of Google Cloud. Again, similar to the partial integration option called out above, a paid engagement or a self-service exercise would be a good fit depending on the complexity of the desired end state.

Here to help

A merger or acquisition is an exciting milestone for any company, but one that needs to be managed carefully. Once you carefully review these considerations, develop a plan of action for your organization. You can also engage Google’s Professional Services for a paid engagement or Google’s Technical Account Management Service for a self-managed process to achieve the desired results.
If you are going through or considering going through M&A at your organization and have a different scenario than what we have discussed, please feel free to reach out to your account teams for guidance or contact us at https://cloud.google.com/contact.

Casper Labs announced a collaboration with Google Cloud that will allow developers to launch public and/or private Casper nodes directly from Google Cloud. This enables a much more seamless and highly secure process for the millions of developers who want to build in blockchain environments without having to learn new, highly specialized programming languages. Additionally, Google Cloud will provide its scalable and reliable infrastructure to developers building on the Casper Protocol. 

Blockchain technology is maturing 

As blockchain technology matures, a growing number of businesses are embracing it as a key way to drive new efficiencies and realize cost savings. 

According to a recent Casper Labs study, 87% of executives polled in the United States, United Kingdom and China reported plans to invest in a blockchain solution in 2023. This is due in no small part due to recent innovations that help organizations overcome the so-called Blockchain Adoption Trilemma, which previously held that it was impossible for any blockchain to be simultaneously a) decentralized, b) scalable, and c) secure.

Thanks to the rise of proof-of-stake blockchains like Casper, new models have emerged that enable a more scalable and secure architecture that no longer forces a compromise on decentralization. 

Another trend facilitating these growing adoption rates is the rise of WebAssembly (WASM) as a baseline technology for newer blockchains, including Casper. WASM (created by W3C) makes application development in blockchain environments far more accessible and interoperable to the millions of developers worldwide who specialize in languages like Java, Javascript, C++ and Rust. Previously, any blockchain-based build required a high degree of specialized developer knowledge, which made it a much more challenging option for most organizations. 

Meet Casper

Casper is a permissionless, decentralized public blockchain based on WASM that was built explicitly to foster enterprise adoption of blockchain technology. Beyond its more accessible model, Casper is the first and only blockchain to offer native upgradable smart contracts. This means that organizations can have the option to securely and consistently update software code even after it is running on Casper. This gives organizations the control and flexibility to use industry best practices, such as continuous deployment and continuous integration, which are already in use in their IT departments. Casper is also highly configurable and allows organizations to support public, private, and/or hybrid deployments. 

Casper is also noteworthy for the presence of Casper Labs, a software development and professional services firm that supports organizations building on the Casper network. Unlike most blockchains that follow a more traditional open-source project, Casper Labs provides around-the-clock support and bespoke software development for enterprise organizations. Recently, Casper Labs helped patent management company IPwe execute the largest-ever blockchain deployment, featuring more than 25 million patents being added as custom NFTs to the Casper Blockchain. 

How to get started with Casper on Google Cloud

Developers who want to start building on Casper can find a comprehensive series of tutorials here.

The Casper Association also recently announced a $25 million grant program to support projects and developers building on Casper. Interested participants can apply here.

There’s a new subsea cable in town: Topaz, the first-ever fiber cable to connect Canada and Asia.

Once complete, Topaz will run from Vancouver to the small town of Port Alberni on the west coast of Vancouver Island in British Columbia, and across the Pacific Ocean to the prefectures of Mie and Ibaraki in Japan. We expect the cable to be ready for service in 2023, not only delivering low-latency access to Search, Gmail and YouTube, Google Cloud, and other Google services, but also increasing capacity to the region for a variety of network operators in both Japan and Canada.

Google is spearheading construction of the project, joined by a number of local partners in Japan and Canada to deliver the full Topaz subsea cable system. Other networks and internet service providers will be able to benefit from the cable’s additional capacity, whether for their own use or to provide to third parties. And, similar to other cables we’ve built, with Topaz we will exchange fiber pairs with partners who have systems along similar routes. This is a longstanding practice in the industry that strengthens the intercontinental network lattice for network operators, for Google, and for users around the world.

Network infrastructure investments like Topaz bring significant economic activity to the regions where they land. For example, according to a recent Analysys Mason study, Google’s historical and future network infrastructure investments in Japan are forecasted to enable an additional $303 billion (USD) in GDP cumulatively between 2022 and 2026.

The width of a garden hose, the Topaz cable will house 16 fiber pairs, for a total capacity of 240 Terabits per second (not to be confused with TSPs). It includes support for Wavelength Selective Switch (WSS), an efficient and software-defined way to carve up the spectrum on an optical fiber pair for flexibility in routing and advanced resilience. We’re proud to bring WSS to Topaz and to see the technology is being implemented widely across the submarine cable industry.

While Topaz is the first trans-Pacific fiber cable to land on the West Coast of Canada, it’s not the first communication cable to connect to Vancouver Island. In the 1960s, the Commonwealth Pacific Cable System (COMPAC) was a copper undersea cable linking Vancouver with Honolulu (United States), Sydney (Australia), and Auckland (New Zealand), expanding high-quality international phone connectivity. Today, COMPAC is no longer in service but its legacy lives on. The original cable landing station in Vancouver — the facility where COMPAC made landfall on Canadian soil — has been upgraded to fit the needs of modern fiber optics and will house the eastern end of the Topaz cable.

Traditional and treaty rights, and local communities, are deeply important to our infrastructure projects. The Topaz cable is built alongside the traditional territories of the Hupacasath, Maa-nulth, and Tseshaht, and we have consulted with and partnered with these First Nations every step of the way.

“Tseshaht is very proud of this collaboration and our partnership with Google, who has been very respectful and thoughtful in its engagement with our Nation. That’s how we carry ourselves and that’s how we want business to carry themselves in our territory.“ — Tseshaht First Nation – Elected Chief Councillor-Ken Watts

“The five First Nations of the Maa-nulth Treaty Society are pleased that we have concluded an agreement with Google Canada and have consented to the installation of a new, high-speed fiber optic cable through our traditional territories. This agreement, in which both Google Canada and our Nations benefit, is based on respect for our constitutionally protected treaty and aboriginal rights and enhances the process of reconciliation. We would also like to acknowledge the sensitivity that Google Canada expressed during our talks in regard to the pain and trauma experienced by our people as a result of residential school experience. We look forward to a long and mutually beneficial relationship with Google Canada.” —Chief Charlie Cootes, President of the Maa-nulth Treaty Society

“Google’s respect towards our Nation is appreciated and has good energy behind it.” —Hupacasath First Nation – Elected Chief Councilor – Brandy Lauder

With the addition of Topaz today, we have announced investments in 20 subsea cable projects. This includes Curie, Dunant, Equiano, Firmina and Grace Hopper, and consortium cables like Blue, Echo, Havfrue and Raman — all connecting 29 cloud regions, 88 zones, 146 network edge locations across more than 200 countries and territories. Learn about Google Cloud’s network and infrastructure on our website and in the below video.

While the promise of artificial intelligence transforming the manufacturing industry is not new, long-ongoing experimentation hasn’t yet led to widespread business benefits. Manufacturers remain in “pilot purgatory,” as Gartner reports that only 21% of companies in the industry have active AI initiatives in production. 

However, new research from Google Cloud reveals that the COVID-19 pandemic may have spurred a significant increase in the use of AI and other digital enablers among manufacturers. According to our data—which polled more than 1,000 senior manufacturing executives across seven countries—76% have turned to digital enablers and disruptive technologies due to the pandemic such as data and analytics, cloud, and artificial intelligence (AI). And 66% of manufacturers who use AI in their day-to-day operations report that their reliance on AI is increasing.

The top three sub-sectors deploying AI to assist in day-to-day operations are automotive/OEMs (76%), automotive suppliers (68%), and heavy machinery (67%).

In fact, Bryan Goodman, Director of Artificial Intelligence and Cloud, Ford Global Data & Insight and Analytics shares, “Our new relationship with Google will supercharge our efforts to democratize AI across our business, from the plant floor to vehicles to dealerships. We used to count the number of AI and machine learning projects at Ford. Now it’s so commonplace that it’s like asking how many people are using math. This includes an AI ecosystem that is fueled by data, and that powers a ‘digital network flywheel.’”

Moving from edge cases to mainstream business needs

Why are manufacturers now turning to AI in increasing numbers? Our research shows that companies who currently use AI in day-to-day operations are looking for assistance with business continuity (38%), helping make employees more efficient (38%), and to be helpful for employees overall (34%). It’s clear that AI/ML technology can augment manufacturing employees’ efforts, whether by providing prescriptive analytics like real-time guidance and training, flagging safety hazards, or detecting potential defects on the assembly line.

In terms of specific AI use cases called out by the research, two main areas emerged: quality control and supply chain optimization. In the quality control category, 39% of surveyed manufacturers who use AI in their day-to-day operations use it for quality inspection and 35% for product and/or production line quality checks. At Google Cloud, we often speak with manufacturers about AI for visual inspection of finished products. Using AI vision, production line workers can spend less time on repetitive product inspections and can instead focus on more complex tasks, such as root cause analysis. 

In the supply chain optimization category, manufacturers said they tapped AI for supply chain management (36%), risk management (36%), and inventory management (34%).

In our day-to-day work, we’re seeing many manufacturers rethink their supply chains and operating models to better accommodate for the increased volatility that has been brought about by the pandemic and support the secular trend of consumers asking for increasingly individualized products. We’ll share more on deglobalization in the third installment of our manufacturing insights series.

AI use differs by geography, but not for the reasons you may think

The extent to which AI is already being used today varies quite strongly between geographies, according to our research. While 80% and 79% of manufacturers in Italy and Germany respectively report using AI in day-to-day operations, that percentage plummets in the United States (64%), Japan (50%) and Korea (39%).

It’s tempting to state this disparity is due to an “AI talent gap.” Although the most common barrier, just a quarter (23%) of manufacturers surveyed believe they don’t have the talent to properly leverage AI. Cost, too, does not appear to be a roadblock (21% of those surveyed). Rather, from our observations, the missing link appears to be having the right technology platform and tools to manage a production-grade AI pipeline. This is obviously the focus of our efforts and others in the space, as we believe the cloud can truly help the industry make a step change.

Looking ahead: The Golden Age of AI for manufacturing

The key to widespread adoption of AI lies in its ease of deployment and use. As AI becomes more pervasive in solving real-world problems for manufacturers, we see the industry moving away from “pilot purgatory” to the “golden age of AI.” The manufacturing industry is no stranger to innovation, from the days of mass production, to lean manufacturing, six sigma and, more recently, enterprise resource planning. AI promises to bring even more innovation to the forefront. 

To learn more about these findings and more, download our infographic here and our full report here. 

^{Research methodology
The survey was conducted online by The Harris Poll on behalf of Google Cloud, from October 15 – November 4, 2020, among 1,154 senior manufacturing executives in France (n=150), Germany (n=200), Italy (n=154), Japan (n=150), South Korea (n=150), the UK (n=150), and the U.S. (n=200) who are employed full-time at a company with more than 500 employees, and who work in the manufacturing industry with a title of director level or higher. The data in each country were weighted by number of employees to bring them into line with actual company size proportions in the population. A global post-weight was applied to ensure equal weight of each country in the global total.}