Google Lands $1.2 Billion Cloud Deal with ServiceNow Amid Growing Enterprise Demand

Google has reportedly secured a $1.2 billion cloud deal with ServiceNow, valued at around $1.2 billion over five years. This agreement adds momentum to Google's push to expand its footprint in enterprise services and boosts its efforts to grow in the competitive cloud market, where Amazon and Microsoft remain key rivals. The deal reflects rising enterprise demand for scalable cloud infrastructure and highlights steady demand for hybrid cloud solutions.

Alphabet Inc.'s Google has secured a significant cloud-computing contract with ServiceNow Inc., valued at over $1.2 billion over a five-year period [1]. This deal underscores Google Cloud's growing influence in the enterprise market and its strategic efforts to capture a larger share of the cloud services sector.

ServiceNow, which provides software to help companies organize and automate their IT operations, has committed to spending $1.2 billion with Google Cloud over the next five years. The company has multiple cloud platform agreements but declined to disclose the value of individual contracts. Google also refrained from commenting on the deal [2].

The agreement comes at a time when Google Cloud is experiencing robust growth. In the second quarter of 2025, Google Cloud's revenue jumped 32% to $13.6 billion, driven by Alphabet's investment in artificial intelligence and its expertise in emerging technologies [1]. The company's Q2 2025 earnings report highlighted strong performance across Alphabet's core businesses, including Search, YouTube, and Cloud. Cloud revenue surged by 31.7% year-over-year, with operating margins expanding from 11.3% to 20.7%.

ServiceNow's Chief Product Officer, Amit Zavery, who joined the company in October 2024, previously worked as a Google Cloud executive. This strategic hire highlights the close ties between the two companies and the potential for further collaboration [2].

This deal is part of Google's broader strategy to expand its cloud services and capture a larger share of the enterprise market. With major players like Amazon Web Services (AWS) and Microsoft Azure already established, Google Cloud is leveraging its strengths in AI and emerging technologies to secure high-value contracts.

Alphabet's increased capital expenditure plan, setting aside $85 billion for 2025, with $75 billion allocated to cloud infrastructure and AI processing capacity, further underscores the company's commitment to meeting growing demand for cloud and AI services [3]. The majority of the investment went towards servers and data centers to meet growing demand for cloud and AI services.

The enterprise market's demand for scalable cloud infrastructure and hybrid cloud solutions is driving this growth. Google Cloud's strengths in AI and data analytics make it an attractive option for tech-driven companies focusing on digital transformation and innovation.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-24/google-lands-1-2-billion-cloud-contract-from-servicenow
[2] https://www.ainvest.com/news/google-secures-1-2b-cloud-contract-servicenow-2507/
[3] https://www.ainvest.com/news/google-cloud-boosts-capex-85b-meet-growing-demand-cloud-ai-services-2507/