AWS and Google Cloud Launch Direct Interconnect, Multi-Cloud Market to Hit $209.5B by 2035

AWS and Google Cloud Build Native Multi-Cloud Pipe

AWS and Google Cloud launched a joint multi-cloud networking service in December 2025 that enables direct private connectivity between the two clouds without third-party intermediaries. The service combines AWS Interconnect with Google Cloud's Cross-Cloud Interconnect, creating dedicated high-speed links between the hyperscalers. For enterprises running workloads across both platforms, this eliminates VPN overhead and partner-mediated networking, replacing it with native connectivity comparable to intra-cloud networking.

This matters because it removes a structural barrier to active-active multi-cloud architectures. Previously, moving data between AWS and GCP required either expensive egress over the public internet or complex arrangements with telecommunications carriers. The joint service shifts multi-cloud networking from a procurement problem to a configuration problem. Enterprises pay for dedicated ports and capacity—typically 1 to 10 Gbps links—rather than per-GB egress fees, which changes the cost model for cross-cloud replication and disaster recovery.

The move also pressures third-party multi-cloud networking vendors whose primary value was providing neutral connectivity between clouds. When two hyperscalers offer native interconnect, the differentiation for overlay vendors shrinks to edge cases like multi-region orchestration or specialized security overlays.

Market Forecast: $209.5B by 2035, 24% Annual Growth

Precedence Research projects the global multi-cloud computing market will reach $209.50B by 2035, up from $21.90B in 2026. That implies compound annual growth above 24%, driven by enterprises treating multi-cloud as default architecture rather than edge-case redundancy. North America will lead adoption through 2035, with AWS, Google Cloud, Microsoft Azure, and Oracle Cloud positioned as the core platforms.

The growth trajectory affects budget planning. Multi-cloud management tools, cross-cloud observability, and FinOps platforms move from discretionary spend to core infrastructure line items. A $209B addressable market justifies multi-year platform commitments to Kubernetes, Terraform, and cloud-agnostic security stacks. It also signals that regulators and boards will increasingly expect multi-cloud resilience as standard practice, not innovation. Vendor lock-in mitigation becomes a compliance question, not just a procurement tactic.

For hyperscaler negotiations, the forecast strengthens enterprise leverage. When multi-cloud is mainstream, credible threats to shift workloads carry more weight in discount conversations. CIOs can point to market data showing competitors assume multi-cloud deployments, making single-cloud commitments harder to justify internally.

HPE-Juniper Acquisition Targets Hybrid and Multi-Cloud Networking

HPE completed its acquisition of Juniper Networks in July 2025 and is now positioning the combined company around AI-driven networking for hybrid and multi-cloud environments. The integration gives HPE cloud-native networking capabilities that support multi-cloud fabrics, targeting enterprises that need consistent network policies across on-premises data centers, AWS, GCP, and Azure.

The timing aligns with the AWS-GCP interconnect launch. As hyperscalers enable direct multi-cloud connectivity, the bottleneck shifts to managing hybrid environments where on-premises infrastructure must interoperate with multiple public clouds. HPE-Juniper addresses that gap with network automation and policy orchestration across hybrid topologies. The company is also launching infrastructure based on AMD's Helios platform, aimed at cloud service providers building next-generation multi-cloud offerings.

For enterprise buyers, this creates a decision point: invest in hyperscaler-native multi-cloud networking and accept tighter coupling to AWS and GCP, or invest in vendor-neutral orchestration layers like HPE-Juniper that add flexibility at the cost of another management plane. The right answer depends on whether workload portability or operational simplicity is the higher priority.

What This Means for Infrastructure Budgets

The combination of native hyperscaler interconnects and a $209B market forecast changes how enterprises should model multi-cloud costs. Networking is no longer a variable expense buried in egress fees—it becomes a fixed-capacity cost with dedicated interconnect pricing. Budget models need line items for cross-cloud connectivity, separate from compute and storage. FinOps teams must track inter-cloud data movement as a discrete cost center, because the AWS-GCP interconnect will show up as a separate charge, not blended into egress.

Risk models also shift. Multi-cloud architectures improve resilience by eliminating single points of failure, but they increase configuration complexity. Running active-active workloads across AWS and GCP requires managing two IAM systems, two network policy stacks, and two security perimeters. The failure mode changes from "one cloud goes down" to "misconfigured cross-cloud policy creates an outage." Enterprises need stronger governance and observability to avoid multi-cloud becoming multi-cost chaos.

What to Watch

Microsoft Azure has not announced a comparable joint interconnect with AWS or GCP. If Azure launches a similar offering in 2026, it will validate multi-cloud interconnects as a permanent category. If Azure sits out, it signals a strategic bet that enterprises will choose Azure-only or Azure-plus-one-cloud, not three-way multi-cloud.

Watch for pricing details on the AWS-GCP interconnect. If per-port pricing undercuts third-party networking vendors by 30% or more, expect consolidation in the multi-cloud connectivity market. If pricing is comparable to existing interconnect services, third-party vendors retain their foothold.

Finally, watch Oracle Cloud's response. Oracle is explicitly named as a core multi-cloud player in the Precedence forecast, but it lacks the joint interconnect advantage AWS and GCP now have. Oracle needs deeper interconnect partnerships or price cuts to stay competitive in multi-cloud architectures.