Stephen
Lam/Reuters
Google Cloud is now a $1 billion per quarter business,
CEO Sundar Pichai told investors Thursday.
That means cloud is 3% of the company's overall
revenues, which mostly come from advertising sales.
Amazon Web Services, the leading cloud computing
provider, booked $5.1 billion in the holiday quarter of
2017.
Google may have made its name as a search engine, but cloud
services are quickly growing in importance for the $817 billion
company.
Google Cloud is now a $1 billion-per-quarter business, CEO Sundar
Pichai told investors during the company's fourth quarter 2017
earnings call on Thursday afternoon. Doing simple multiplication,
that means cloud computing could be a $4 billion business for
Google annually.
While that's a drop in the bucket for Google parent company
Alphabet, which raked in $32.3 billion in GAAP revenues for the
quarter, it's a major landmark considering the company's broad
focus.
The majority of Google's business comes from advertising, which
accounted for $27 billion in revenues for the just-ended quarter.
Google's cloud rivals, however, still have much bigger pieces of
the pie. Amazon
reported $5.1 billion in sales across its cloud division for
the fourth quarter. Microsoft's Azure, widely considered the
number two cloud service,
almost doubled in revenue from the year before, booking
$5.3 billion in total cloud revenue.
It's worth noting that it's misleading to do a direct comparison
between Google Cloud and Amazon Web Services: Google Cloud
includes revenue from the search giant's cloud infrastructure
services, as well as its popular G Suite productivity service.
Meanwhile, Amazon Web Services does the vast majority of its
business in cloud infrastructure. Microsoft, for its part, also
includes revenue from infrastructure, productivity, and other
business services in its figure.
Despite gains in the cloud, things were otherwise rocky for
Google's partner company Alphabet. The company
reported $25.9 billion in net revenues for the quarter
— a miss compared to the $26.32 billion the analysts
expected.
Click here to read more about Alphabet's fourth quarter 2017
earnings.
Get the latest Google stock price here.
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