Google clouds revenue growth shows a slowing growth curve. Google Cloud services generated $3billion revenue in Q2 2020 up 43 per cent from $2.1 billion same period last year. Last quarter, Google Cloud saw a 52 per cent year-over-year increase, which indicates a slowing growth.
However, for Q2, the growth is attributed to Google Cloud Platform (GCP) infrastructure offerings and the data and analytics. Earlier this month, Google Cloud announced a new product that allows customers to run its flagship data warehouse product BigQuery on multiple clouds, even those of rivals like Amazon Web Services and Microsoft.
Ultimately, Google Cloud was one of the bright spots for Alphabet on this earnings report. While its earnings report slightly low growth, it beat expectations. overall, Google saw its first quarterly revenue decline since going public,
“GCP maintained the strong level of revenue growth it delivered in the first quarter, and its revenue growth was again meaningfully above cloud overall,” said Google CFO Ruth Porat.
“Overall, the lower Google Cloud revenue growth in the second quarter relative to the first quarter reflects the fact that G Suite lapped a price increase that was introduced in April last year. G suite maintained healthy growth in average revenue per seat as well as in-seat growth which does not include customers who took advantage of our free trials as they shifted their employees to work-from-home.” Porat said.
“G Suite products and in particular Google Meet have been absolutely critical,” Alphabet CEO Sundar Pichai said on the earnings call. “We quickly re-engineered it and made it available widely to help millions of businesses and other organizations connect and collaborate.”
Google still trails behind cloud rivals like AWS and Microsoft. The company is still putting a big focus on hiring and building new data centres. Since Google Cloud CEO Thomas Kurian joined early last year, the company has been winning over talent from enterprise stalwarts like Oracle and SAP.