Some analysts were skeptical when Google first reported profits from its cloud business, but today’s earnings report shows that the company is finally turning a profit on its cloud operations. This is big news for Google, as it has been chasing rivals Amazon and Microsoft in the cloud game for years.
The great news for Amazon is that its revenue and profits have both grown significantly in the past year, despite the ongoing struggles of other major cloud providers. A $191 million gain in 2018 was largely thanks to increased cloud infrastructure sale, as well as higher gross margin for Amazon Web Services unit. This demonstrates just how strong Amazon’s position has become in the industry, and gives investors hope that profits may continue to grow even amid increasing competition from Google and Microsoft.
As Google Cloud Revenue growth slows, cost-conscious businesses are turning away from cloud services in favor of more affordable and less complex alternatives. In this rapidly-changing market, the only way for Google to continue its dominant position is to offer even more affordable options for business customers.
Google’s Cloud division has been profitable for the first time in fifteen years, which is a significant milestone for the company. This shows how hard it is for new players to enter the space and what’s required to achieve escape velocity for cloud adoption.
Despite the slowdown in growth, Google Cloud remains one of the most profitable cloud services providers. This is due in large part to the company’s focus on steering Cloud towards profitability, which has seen its cloud segment turn a profit for the first time. However, despite this success, Google Cloud still trails its two main competitors by a wide margin and will need to continue innovating in order to stay competitive.
The rise of Google Cloud as a premier provider of infrastructure and platform as a service has forced competitors to up their game. Microsoft Azure, Amazon Web Services, and other players have all released new products that make it easier for businesses to capitalize on the benefits offered by these cloud-based platforms.
It is clear that LinkedIn have made a considerable turnaround in their cloud unit since reporting $5.6 billion losses in 2020. This is a great sign for the company and shows that they are willing to put in the hard work to improve their performance. This can only be good news for LinkedIn’s shareholders and customers alike, as it demonstrates that the platform is here to stay and there are real improvements being made within the company.
Large companies and their CEOs continue to rake in huge sums of money while laying off employees, buying back stock, and getting rich off of the backs of working people. In this increasingly bleak economic climate, it is clear that the wealthy elite are doing what they can to stay ahead of the game while regular people struggle.