Google Cloud generated $ 3.44 billion in revenue compared to $ 3.32 billion expected by analysts, according to its third quarter results. This is a 45% increase from $ 2.38 billion in the same period a year ago, which is faster growth than Amazon Web Services (up 29%) although slightly slower. than Microsoft Azure (up 48%).
The efforts come as the company tries to convince investors that it still sees itself as a serious player despite its distant third place finish. In 2019, Amazon held 45% of the cloud infrastructure market, while Microsoft held around 18% and Google around 5%, according to research firm Gartner.
“The point Sundar and I have made is that we are aggressively investing in the cloud given the opportunity that we see and, frankly – the fact that we have been behind our peers – we are very encouraged by the pace of customer wins and very strong growth in GCP’s revenue and workspace that we intend to maintain at a high level of investment, ”CFO Ruth Porat said on a call Thursday to the results. “We think we are still at the start of this journey. ”
Specifically, Google wants to show how much it invests in its cloud business.
“With segmentation, you will further see information on the scale of our investment, which will help us measure the progress we are making on the road to several years to come to create sustainable value,” said the CEO. Sundar Pichai.
Showing the scale of these investments could help Google compare favorably to smaller cloud players like IBM and Oracle, whose capital expenditures are much lower than those of larger cloud competitors.
Heather Bellini of Goldman Sachs asked Pichai what he thought of Google Cloud CEO Thomas Kurian, given he had been at the helm for almost two years now.
“I can see it pick up speed and I can see the results come into play,” Pichai replied. “Evolving our marketing, our employees and our partners – I think this has been essential. I think value-based pricing – this deeper game is something that excites me.
Pichai also touted the company’s ability to integrate its famous artificial intelligence technology.
Executives also touted its growing mainstream services like Gmail and Google Drive, which the company has sought to replicate with success in businesses, schools and nonprofits for years. The company recently tried to rebrand its consumer products in order to gain popularity.
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