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Google Spent $625M On A Startup To Force Its Way Into Every Industry

Google.Eduardo Woo/Flickr

Google started out as a small group that eventually became an international presence thanks to one simple fact: it was necessary. The company’s service became the go-to search engine option for the majority of internet users, which forced advertisers and other companies to spend money in order to take advantage of the emerging form of exposure. Google doesn’t plan to end its ambitions there, however, as the tech giant just spent $625 million to acquire a startup that helps other non-tech companies create their own apps.

The startup in question is called Apigee, and it basically allows businesses that are not in the tech industry to create software and tools of their own, Recode reports. If a clothing retailer or a meat shop wanted to create apps for their businesses, for example, Apigee helps them out.

Although the financial benefits of such an acquisition might seem obvious, Google enterprise SVP, Diane Greene spoke to Recode to clarify the company’s intent. When asked what made Apigee worth getting, she pointed to the service’s simplicity.

“With app engines and containers, we’ve eliminated a lot of the code needed — sort of the back end of the back end,” she said. “Now we can provide the front end of that back-end service.”

Greene also indicated that the acquisition of the startup fits in with everything she and Google have been trying to do since her appointment several months ago. By providing corporations with just one face to talk to and a direct line to the company’s engineers, a seamless integration by Apigee is easier to achieve.

As the Wall Street Journal notes, the whole point of hiring Greene in the first place was to help Google become a more dynamic corporation that extends beyond just the digital niche that the company currently occupies. She is meant to bring more corporations to the table to use more of the tech giant’s services, thus expanding its influence much further.

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