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Google Cloud grabbing the eyeballs of investors by breaking into cloud revenue

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Google cloud business
Google cloud business, Photo by Mitchell Luo on Unsplash

The Indian-American chief executive of Alphabet inc.; discussed the high earnings of Google Cloud in the third quarter that ended last September 30, 2020.

Both Google Cloud Platform(GCP) and Google Workspace registered a 45% jump in revenues of services offered. Last year, the July-September quarter’s revenue stood at $2.38 billion, which is $3.44 billion this year. Such aggressive results and investments indicate to investors that Google is serious about the cloud business.

Words from the CEO and CFO in an interview

In an interview, a representative from Goldman Sachs asked Sunder Pichai about his views on Google Cloud’s performance recently. He responded by saying, “I can see it ramping, and I can see the results coming into play.” Pichai also appreciated the efforts by Google Cloud CEO Thomas Kurian for over two years now. Furthermore, he expressed the prospects of Google to delve into artificial intelligence technology.

CFO Ruth Porat talking of the investment prospects, said, “strong revenue growth of GCP and workspace that we do intend to maintain a high level of investment.” Speaking through the fact that Google Cloud is in its baby stages, he said, “We do believe we’re still early in this journey, we are investing aggressively in cloud given the opportunity we see.”

Comparison with peers

Among the global competitors, Google Cloud ranks as the third-largest cloud computing service provider. Ahead of it are Amazon Web Services and Microsoft Azure.

However, the recent growth traction of a 45% increase in Google Cloud revenue has scrapped off all records. A surge in the revenue was equated to 29% for Amazon Web services, while Microsoft reported an increase of 47%. Hence this year, Google Cloud has witnessed an escalating growth in comparison to its competitors.

The increasing demand for cloud systems and low costs are helping Google to grow by leaps and bounds. The investors and partners are highly applauding this seriousness of Google towards its cloud business.

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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