Google is shutting down a tool for non-programmers to make apps, in a move that shows it's getting more strategic in the cloud wars with Amazon and Microsoft (GOOGL)

Thomas Kurian

Google is shutting down App Maker — a tool to make it easy for non-programmers to make simple apps — a week after it acquired Seattle-based startup AppSheet.
AppSheet and App Maker have some overlap in functionality, and Google is encouraging users to make the switch after App Maker fully shuts down in 2021. Some users aren't happy about that.
However, by shutting down App Maker, Google can put more resources into building out AppSheet and double down on its larger ambitions in the market for so-called no-code and low-code tools, experts say.
Google trails Microsoft in the low-code/no-code space, and is hoping to use the AppSheet acquisition to become a stronger player and get more strategic.
These kinds of tools are seen as highly strategic in the cloud wars: The world's demand for software is slated to outpace the supply of programmers who can create it, so tools like Microsoft's Power Platform and Google's AppSheet will only get more important.
Click here for more BI Prime stories.

Google announced this week that it is shutting down App Maker, a tool for even non-programmers to quickly make simple apps, in the January of 2021 — citing low usage for the move.

On the surface, this seems like Google is shifting focus away from the market for so-called low-code/no-code tools; a space that's slated for huge growth as the the world's demand for software will soon outstrip the supply of programmers to create it.

However, experts tell Business Insider that it's exactly the opposite: Rather, it shows that Google Cloud is getting more strategic in how it approaches the market, which could give it a competitive edge against leading cloud rivals Amazon Web Services and Microsoft.

The low code/no code market is expected to be worth a whopping $52 billion in 2024, a huge increase from $6 billion in 2018, according to a recent report from equity research firm RBC, citing P&S Intelligence, and Google wants a piece of it.

The App Maker announcement comes a week after Google acquired Seattle-based no-code startup AppSheet. AppSheet lets users create simple mobile apps by connecting to to services like Google Sheets, Microsoft Office 365, and Salesforce, with no coding required.

In fact, App Maker and App Sheet had some overlap. By shutting down its App Maker product, Google is able to invest in building out AppSheet and double down on its larger ambitions in the no-code/low-code space, which is to grow its enterprise presence and take on Microsoft's similar Power Platform product, experts say.

Too narrow

The ways in which App Maker could be used were too narrow and would have taken more engineering effort to build out, so the AppSheet acquisition was primarily about getting the right technology, Jason Wong, an analyst at Gartner, told Business Insider.

With AppSheet, Google gets a customer base that already uses Google Sheets and runs on top of Google Cloud, Wong adds, but the main motivation for buying the company is the technology. "It's really a technology acquisition to accelerate what they intend to do, which is competing more directly with [Microsoft] Power Apps," he said.

To that point, Microsoft has invested heavily in this space with its Power Platform product, including Power Apps. A few prominent startups, including Zapier and Airtable similarly allow users to build simple apps and integrations without any technical specialty. App Maker couldn't stand up against those competitors in the same way that AppSheet can.

Daniel Newman, analyst with Futurum Research, told Business Insider this is a smart move on Google's part to scale up and build a single strong product, rather than try to split its focus across two.

"For Google, it's smart to get down to the lowest common denominator and have one app platform for different functions, instead of trying to have multiple...getting that strong traction and adoption and then scale," Newman said.

A year of transition

In the blog post announcing the shutdown of App Maker, Google encourages users to move its apps over to AppSheet using the same data it used with App Maker. Users will have a year to make the switch, until App Maker officially shuts down on January 19th of 2021. Even before that, though, Google will turn off the ability to make new apps with App Maker by April 15th, and by the beginning of 2021, even existing apps won't work any longer.

AppSheet CEO Praveen Seshadri addressed the many user complaints over the shutdown in App Maker's official support forum, saying that AppSheet will help users make the transition as painless as possible. He also posted on an AppSheet forum, urging existing customers to help those making the transition.

He did, however, say that there will be many details for Google Cloud to work out, as App Maker is phased out, and AppSheet is officially brought into G Suite, Google's productivity suite for businesses. Specifically, he noted, there are still details around pricing that have to be worked out.

"I understand that there will be cases where AppSheet falls short of what you could do with AppMaker. We'll try to help you one way or the other, " he wrote. "I also know some of you have questions about pricing, packaging, etc for GSuite customers who want to use AppSheet. All I can say is -- please give us a short while to figure out those answers. We don't have them at the moment, but we know there is a concern and will try to get to a rapid resolution."

Google did not comment on Seshadri's comments beyond what has been published in its official blog post.

AppSheet is strategic

While the terms of the AppSheet deal were not disclosed, experts previously told Business Insider that the acquisition is a key step for Google in its mission to win over larger enterprise customers and establish itself as a true heavyweight in the market.

Vying for a piece of the low-code/no-code market is critical to that as demand for automation in the workplace outpaces the number of developers able to build those kinds of tools from scratch. Equity research firm RBC, citing P&S Intelligence, said in a recent report that the market is expected to be worth a whopping $52 billion in 2024, a huge increase from $6 billion in 2018.

Having a foothold in that space will make Google Cloud a more attractive option to potential enterprise customers and transitioning customers from App Maker to AppSheet is critical to that goal.

Google Cloud is currently trailing behind Amazon Web Services and Microsoft Azure in the cloud computing market. CEO Thomas Kurian has an ambitious goal of getting Google Cloud to the number-two spot in the cloud market in the next five years, a source previously told Business Insider.

Got a tip? Contact this reporter via email at pzaveri@businessinsider.com or Signal at 925-364-4258. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Join the conversation about this story »

NOW WATCH: Each year, the US gets around 4 times as many twisters as the rest of the world combined — here's why