Alphabet, Google’s parent company, has announced its financial results for the final quarter and fiscal year which ended December 31, 2017. During an earnings call examining the fourth-quarter results, Alphabet disclosed the combined earnings of Google Cloud and its G-Suite productivity software at $1 billion for the quarter. Earnings for Google Cloud for 2017 reached $2.9 billion.
This announcement puts Google Cloud behind AWS’ reported $5.1 billion quarterly revenue. Microsoft Azure is also ahead of Google Cloud for the quarter, with Intelligent Cloud (including Windows Server and Azure) revenue hitting a combined $6.8 billion for the quarter.
Google, a subsidiary of Amazon, is a primary competitor to Amazon in a number of different fronts. Cloud services, virtual assistants (Assistant, Alexa), advertising, smart home ecosystems (Home, Echo), and On-demand Video (YouTube Red, Prime) are just a handful of the product categories that the two tech giants compete in.
Google Cloud Growth
Alphabet is growing. Its “other revenues” segment in the earnings report reflects an increase from $3.4 billion for Q4 2016 to $4.7 billion in Q4 2017. This category includes Google Cloud, the Google Play Store, Google Home and Pixel devices.
“We are saying we crossed a billion a quarter in 2017 and according to publicly available numbers, we are the fastest growing cloud,” Google’s Diane Greene told TechCrunch.
There isn’t enough publicly-available data to put proof to the claim that Google Cloud is growing faster than its chief competitors. Microsoft Azure, for example, reported a 98% growth year-over-year in Q4 2017.
One thing is for certain. Alphabet is not giving up on its cloud offerings anytime soon. It’s a profitable part of its overall business, and one Google is investing heavily in.
A new AutoML cloud service recently launched by Google gives Cloud customers the ability to create and deploy AI and machine learning applications without having to do any hard coding.
Five new cloud regions and three new undersea cables were announced earlier in January 2018, increasing Google Cloud’s reach and availability in several key sectors, worldwide.
In order to better compete with AWS and Azure, Google Cloud has teamed up with MobileIron to create an app marketplace for enterprise customers.
Google Cloud continues to lag behind Microsoft Azure and AWS for the time being, but its growth and earnings potential continues to show why it remains one of the top cloud providers worldwide.
At the time of this article’s writing, Google Cloud holds a 13.347 rating on the Liftr Index against AWS’ 17.667 and Azure’s 17.306.