Nandini Roy Choudhury, writer
Brief news
- Google Cloud’s revenue grew 35% year-over-year to $11.35 billion in Q3, surpassing competitors like Amazon Web Services (19% growth) and Microsoft Azure (33% growth).
- Analysts note that Alphabet’s revenue diversification is improving due to Google Cloud’s rapid growth, countering previous criticisms of reliance on digital advertising.
- Google reported a 17% cloud operating margin, marking a significant turnaround from past financial losses, although future profitability remains uncertain.
Detailed news
Google outpaced its competitors in growth this week, a critical indicator for investors that the internet company is gaining traction in artificial intelligence, as Wall Street was adamantly focused on cloud computing.
The cloud business of Google, which encompasses both infrastructure and software subscriptions, had a year-over-year growth of 35% in the third quarter, reaching $11.35 billion. This growth was a significant acceleration from the 29% growth seen in the previous quarter.
Amazon Web Services, the market leader, experienced a 19% increase in revenue to $27.45 billion. This indicates that it is more than twice the scale of Google Cloud, but its expansion rate is approximately half that of Google Cloud. Microsoft, which is currently in second position, reported a 33% increase in revenue from Azure and other cloud services compared to the previous year.
This week, five of the six trillion-dollar technology companies disclosed their financial results, with Nvidia, an AI processor manufacturer, being the exception. It is common practice for Amazon, Alphabet, and Microsoft to release their quarterly reports at around the same time, providing investors with a glimpse into the ongoing cloud battles.
In a report published on Oct. 31, analysts at Argus Research suggest that Alphabet’s revenue has begun to diversify as a result of the rapid growth of Google Cloud, despite the company’s frequent criticism as a Johnny-one-note due to its reliance on digital advertising.
Cloud computing was a significant expense for Google for an extended period; however, this has since been rectified.
During the third quarter, Google announced a cloud operating margin of 17%. This comes after the company made its first profit in the previous year. Melissa Otto, Visible Alpha’s chief of technology, media, and telecommunications sector research, stated on CNBC this week that the results were “substantially superior to expectations.” She stated that she is uncertain as to whether the organization can maintain that level of profitability.
Google outpaced its competitors in growth this week, a critical indicator for investors that the internet company is gaining traction in artificial intelligence, as Wall Street was adamantly focused on cloud computing.
In the third quarter, Google’s the cloud business, which encompasses software subscriptions and infrastructure, experienced a 35% year-over-year increase to $11.35 billion, a significant increase from the 29% growth experienced in the previous period.
the Amazon Web Services, the market leader, experienced a 19% increase in revenue to $27.45 billion. This indicates that it is more than twice the scale of Google Cloud, but its expansion rate is approximately half that of Google Cloud. Microsoft, which is currently in second position, reported a 33% increase in revenue from Azure and other cloud services compared to the previous year.
This week, five of the six trillion-dollar technology companies disclosed their financial results, including Nvidia, an AI processor manufacturer.
as the anomaly. Investors are provided with a comprehensive understanding of the cloud conflicts by the consistent reporting schedules of Amazon, Alphabet, and Microsoft.
In a report published on Oct. 31, analysts at Argus Research suggest that Alphabet’s revenue has begun to diversify as a result of the rapid growth of Google Cloud, despite the company’s frequent criticism as a Johnny-one-note due to its reliance on digital advertising.
There was a period of time when Google’s cloud services were a source of financial loss, but this is no longer the case.
Google achieved its first profit last year and reported a 17% cloud operating margin in the third quarter. Melissa Otto, Visible Alpha’s chief of technology, media, and telecommunications sector research, stated on CNBC this week that the results were “substantially superior to expectations.” She stated that she is uncertain as to whether the organization can maintain that level of profitability.
Source : CNBC News
