Editor’s note: Google’s most recent earnings report shows that Investments across critical sales and support channels induce early growth for Google Cloud, amplifying executive confidence in the business’ future, says Technology Business Research Analyst Meaghan McGrath.
HAMPTON, N.H. – Google’s most recent earnings report shows that Investments across critical sales and support channels induce early growth for Google Cloud, amplifying executive confidence in the business’ future,
Though still less than 5% of Alphabet’s corporate revenue, Google Cloud is undeniably regarded as a future growth driver for company, amid the bevy of other investments Alphabet is making.
Executives noted strong growth in Google Cloud Platform (GCP) and G Suite, enough to nearly counter the seasonal lulls in Play and Hardware revenues that make up the remainder of “Google other revenues.”
TBR estimates that Google Cloud revenue grew more than 58% year-to-year, to an estimated $1.2 billion in 2Q17 revenue, with significant influence from a strengthening of sales, customer support and partnerships around GCP; global capacity expansion; multifaceted growth across geographies, verticals and customer segments; and three times the number of large enterprise deals, in excess of $500,000, than in the prior year.
Alphabet executives continue to agree that Google Cloud is a strategic growth area that will benefit in the long term from focused investments in personnel and technology to further enrich the business’ strengths across artificial intelligence, data and analytics, security and service reliability.
(C) TBR
