Posted on 04/26/2023 6:55:56 AM PDT by Cronos
Google said its cloud group has turned profitable on an operating basis after showing losses for more than three years.
Google is third in the U.S. cloud infrastructure market, behind Amazon and Microsoft.
Google has been pouring money into its cloud-computing business to compete with Amazon and Microsoft . Those hefty investments are finally turning a profit.
Alphabet said Tuesday that Google’s cloud business is profitable for the first time in the three years it’s been reporting operating metrics for the division.
The segment generated $191 million in operating income on $7.45 billion in revenue in the first quarter, according to Alphabet’s earnings statement. In the year-ago quarter, the unit reported a $706 million loss on $5.82 billion in revenue.
The cloud business includes the Google Cloud Platform, which rents out cloud infrastructure and services that companies can use to build and run their own applications, as well as Google Workspace productivity software subscriptions. Together, the business now accounts for 10% of Alphabet’s total revenue. Cloud customers include Deutsche Bank , Major League Baseball, PayPal and UPS
Google has been vying to win business from big corporations and government agencies that are deciding between major tech vendors as they move from traditional data centers to the cloud and rely on more compute-heavy applications involving artificial intelligence. Amazon Web Services, the leader in cloud infrastructure, popularized the market in the mid-2000s and has been profitable every quarter since 2014. Microsoft, the second-biggest player in the space, doesn’t report profitability figures for its Azure unit.
(Excerpt) Read more at cnbc.com ...
AWP is always dangerous as Amazon may turn out to be your competitor.
For big data and warehousing projects I would use Azure, but for transactional GCP seems better
There was some “creative accounting” involved in making this happen today. The rest of the Google news needed boosting.
It was not great.
Profitable is good :)
I don’t know if its the same cloud service but I just canceled my google cloud for my Mac. Didn’t realize my Apple cloud was backing up my Mac also! lol
I don’t know for sure but I thought that Apple used iCloud which is on AWS
If you store it in their cloud and they decide they don’t like the business you are in, they can cancel you and your business.
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