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Google has signed a definitive agreement to acquire US-based Apigee, an API management company to enhance its cloud business. A Reuters report pegs the size of the deal at $625 million; Google will pay Apigee’s shareholders $17.40 for each share, added the report. This is Google’s second acquisition in the cloud business space: In July it bought Anvato, a cloud based platform to scale media processing and workflows in the cloud.

Apigee offers customized APIs for developers and enable them to build applications around a tailored ecosystem. For example: Pharmaceutical store Walgreens uses Apigee’s API management tools to developed a mobile app that prints photos of prescriptions or medicines specified by customers at stores; the app can also be later used to order refills for the same prescription online.

How Apigee will enhance Google’s cloud business

This technology will now be integrated in Google’s cloud offerings including Google App Engine, and Google Container Engine—both together provides a Platform-as-a-Service (PaaS) for hosting web apps on Google managed cloud data centers. “Now, with Apigee’s API management platform, they’ll (users) be able to front these secure and scalable services with a simple way to provide the exported APIs,” Google said in the blog post.

In addition, Apigee’s technology will also be used in Kubernetes—an open source system for automating deployment, scaling, and managing cloud-hosted applications. This is mainly targeted at enterprise customers as Google mentions that the Kubernetes-Apigee integration will “help enterprises get better control and visibility into how their internal systems talk to one another, an additional part of deploying services.”

Competition

Amazon Web Services (AWS) had earlier acquired Elemental Technologies for $500 million in September last year. Months later during their Q4 2015 earnings Amazon said that AWS had sales of $2.405 billion, a growth of 69% y-o-y growth.

IBM on the other hand had acquired live streaming provider UStream in January. The company then reported that revenue from its cloud, analytics and security business increased by 12% year-on-year to $8.3 billion, even though overall revenues had slowed down. Microsoft’s cloud unit Azure Media Services reported a revenue growth of 120% with the usage of the platform doubling year over year during Q3 2016.

In August 2015, Amagi launched a managed service that helps broadcasters simplify video content preparation, management and delivery using its cloud platform. Amagi’s platform would also let broadcasters manage assets and archives, traffic and scheduling and provide 24/7 monitoring. It also added an ad insertion product called Thuderstorm that delivers targeted advertising for premium live sports and news feeds. Thunderstorm will allow TV networks to insert ads on the server side as opposed to the traditional client-side insertion.

Moodstocks acquisition

Google acquired France based machine learning startup Moodstocks for an undisclosed amount in July. Post acquisition, the entire team of Moodstocks were reportedly joining Google’s R&D facility at Paris, and they were said to help strengthen visual recognition capability in Google’s image or video based products.