Yes, but even internally, separation between departments in a company is extremely important.

Google cannot have a breach between the services running gmail and the services running adwords for example, even if those are running in the same server on an internal cloud that has strict permissions being enforced by software.

This is especially even more relevant in any kind of datacenter application, even if the company is the sole tenant, because they are working with Client Data - which is data that does not belong to Google, but to their customers.