Ad tech company OpenX signs a $110 million cloud deal with Google

Post the deal execution, the company would become one of the first 100 percent cloud-based programming advertisement platforms.

The U.S.-based programmatic advertising technology company OpenX has reportedly signed a five-year deal with Alphabet Inc’s Google to utilize its cloud computing services. As per trusted sources, the agreement is being valued at more than USD 110 million and is being termed as a first for the online ads industry.

Reportedly, the firm inked the deal in the fourth quarter following an evaluation of cloud providers such as Microsoft Corporation and Amazon Inc., both of which are far ahead of Google in terms of market share. Sources familiar with the development claim that OpenX has already started transferring data to the servers of Google from its own. The company would establish itself as the first prominent online ad exchange to move fully to the cloud.

The Chief Brand Officer at OpenX, Dallas Lawrence was reportedly quoted saying that the company would become one of the first 100 percent cloud-based programming advertisement platforms following the execution of the new deal. Lawrence further stated that OpenX is the first prominent ad exchange to move fully to cloud, enabling the innovation, scalability, and speed required for the future.

If reports are to be believed the latest agreement is symbolic of a greater shift going on in the digital advertising space, where tech firms are looking at ways of assisting the marketers in a better manner. The financial commitment of OpenX to Google also signifies the growing usage of artificial intelligence services by the firm.

For the record, ad exchanges utilize automated software to match millions of advertisement requests per second from online publishers with real-time bids from the advertisers. Reportedly, among the few other firms that reveal cloud agreements, chat app developer Snap Inc has stated that would spend at least USD 400 million each year on Google Cloud for the next five years.