What does Google still need to catch up on in cloud? Building products/services? Sales? AFAIK, they have comparable cloud services to most AWS/Azure offerings.
Mostly I think it’s just acquiring customers. The big cloud providers go to great lengths to lock their customers in, so convincing them to switch is hard. Requires a much better product which seems pretty much impossible against aws and azure or a much cheaper price.
From someone who does enterprise technical sales for a B2B company: Identity Management is a major area of concern for GCP / GSuite, at least in the enterprise space, especially for the low to moderately technical folks that I sell to. The same could be said for AWS but they have first mover advantage in many ways.
I don't think shutting down products applies to GCP services. Even if it did, it doesn't explain the $858M loss. They are spending big on something to "catch up", I'm just not sure what it is.