Tech companies are increasingly becoming more mobile and cloud based. According to Affirm and PayPal co-founder Max Levchin, Google’s (NASDAQ:GOOGL) best bet to rival Amazon (NASDAQ:AMZN) is through the cloud services business.
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In his opinion, Google should diversify and focus on its cloud storage services as a means of competing and catching up to Amazon’s AmazonDrive.
“What happens in the back end in the server land, it’s all going to the cloud and I think upper go the Alphabet, diversification from their enormous and successful advertising business. As the price per clicks starts dropping, they have to diversify and their strongest play is following and trying to catch up to Amazon with their cloud offering,” Levchin tells FOX Business Network.
The tech landscape is growing in terms of mobility and cloud storage offerings as consumers shift away from their desktops to their phones.
“I think one of the trends that’s oft talked about, but is just impossible to overestimate, is the shift to mobile. If you look at the secular trend all over the world certainly in this country and we’re actually kind of a laggard compared to the rest of the world, shifting from desktop computing, desktop shopping, desktop everything to mobile devices, tablets, phones, it’s just an unbelievable force that’s probably the most powerful single opportunity,” Levchin says.