> Assuming "enterprise" really is that big of a deal in this arena.
Enterprise is not a big deal. It's literally everything when it comes to cloud infrastructure. You can thrive with SMBs but you will never be able to match the revenue potential of closing enterprise deals.
The hardcore SaaS sales motto is that if you win the enterprise, you win the market... That's a very very real statement. You're unlikely to capitalize on any expanded and growing market if you're just a niche player catering companies under 10MM ARR. That doesn't mean you can't build a great company that caters for SMBs, but you just won't be a significant player in the market (Think Digital Ocean).
You can try to capture all that theoretical mass of small and medium businesses which in theory looks larger and more profitable when seen as a block, but you will burn yourself harder and get less return over those deals. It's simple math. It's better to go after an account that will spend 20MM on your services (for instance Netflix), than trying to close 200 accounts that will spend 100K on your services.
The logic here is that by earning the trust and loyalty of the enterprise clients you can slowly capture the other segments of the market. Not the other way around.
If Google's plan for their cloud is to focus on SMBs, they will get crushed even harder and potentially disrupted by niche companies which ironically will build their own offerings on top of more feature-rich public clouds like AWS or Azure.