Uber plans to transfer the contents of its data centers to Google Cloud and Oracle as part of two separate, seven-year deals.
Unlike most of the technology sector, Uber has long relied on its own server hardware. But when COVID-19 disrupted supply chains and IT hardware delivery timelines stretched beyond a year, the San Francisco-based company changed its approach.
Using a cloud provider lessens the firm’s reliance on hardware supply chains, and allows it to take advantage of certain cybersecurity defenses and compliance standards, Uber’s senior director of technology strategy Kamran Zargahi told The Wall Street Journal(Opens in a new window).
“To deliver on [our] promise for customers while building value for shareholders, we needed a cloud provider that will help us maximize innovation while reducing our overall infrastructure costs,” Uber CEO Dara Khosrowshahi said in a statement.
The move, which includes more than 95% of Uber’s IT, should be complete “within a few years,” according to Zargahi. It also means shifting engineers from managing data centers to “areas that make differentiation for our product.”
“Oracle provides an ideal combination of price, performance, flexibility, and security to help us deliver incredible customer service, build new products, and increase profitability,” Khosrowshahi explained. Oracle also agreed(Opens in a new window) to use Uber as its preferred rideshare for global employees.
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Google, meanwhile, will provide technical investments(Opens in a new window) across its Cloud, Ads, and Maps platforms to help reduce Uber’s cost-per-trip, generate new revenue channels, and improve in-house analytics and customer experiences.
Uber, Alphabet, and Oracle did not immediately respond to PCMag’s request for comment on the value of each deal. Uber also declined to answer the Journal‘s question about how it plans to spread its data and applications between the Google and Oracle cloud services.
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