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26 July 2017
| James Pearce
Google’s parent company Alphabet saw its revenue grow 21% in its second quarter earnings results, driven in part by a huge boost to its cloud business.
The internet giant posted overall revenue of $26 billion for
the three months ending June 30, with its "other business"
– sectors where revenue is not made through
advertising – which includes cloud services contribute
$3.1 billion of that. That is a 42% rise year-on-year.
Google does not break off its cloud results, although the
firm has expressed ambitions to surpass market leader Amazon
Web Services as the top hyper scale cloud provider within the
next five years.
Google’s enterprise cloud customers include
Nintendo, Home Depot, Coca-Cola, and Spotify. CEO Sundar Pichai
told analysts on Monday that Google Cloud Platform has a
"diverse set of use cases across sectors and industries and
geographies and so, I would say the breadth of what we have
seen, it's really surprised me."
The success of Google Cloud included seeing the number of
deals valued at over $500,000 triple from the same period in
2016, Pichai said. Google has made a number of major cloud
announcements in the last year, expanding the reach of its
Cloud Platform in November by adding new regions in the US and
Japan. It has also announced agreements with the likes of
Megaport, Tata Communications, and Level 3.
"Google Cloud Platform, GCP, continues to experience
impressive growth across products, sectors and geographies and
increasingly with large enterprise customers in regulated
sectors," Pichai added.
"Responding to the growth in existing and new customers
around the world, we continue to invest in data centres to
provide them the fastest most reliable service. We opened new
Google Cloud regions in Northern Virginia, Singapore, Sydney
The cloud market is estimated to be worth around $10
billion, but AWS holds a market share of around 33%, Synergy
Research said earlier this year, with revenue more than the
next five providers combined. Microsoft is also competing with
Google, through its Azure platform.