Google Cloud is still losing buckets of money

Date:
Wed, 02 Feb 2022 12:30:38 +0000

Description:
Google Cloud tried to cut down on expenses by squeezing more life out of its hardware.

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In a bid to try and cut down on losses from its cloud business, Google
decided to extend the life of its hardware by a year, sometimes even two.

The news was revealed during parent company's Alphabets Q4 2021 earnings call where the company said it had reduced depreciation expenses by $2.6 billion.

However, despite squeezing just a little more juice out of their cloud
servers and some networking kit, the company still racked up quite a lot of losses in its cloud business - seeing an $890 million loss for the fourth quarter of 2021, and $3.1 billion for the entire year of 2021. Relative
growth

However, instead of hard numbers, the company focused on percentage change. Apparently, revenue growth is up 45% year-on-year, while the companys backlog revenue grew by more than 70% for the period. In total, thats $51 billion, most of which, as the publication reminds, is attributable to commitments to spend on Googles cloud business .

Reporting on the business operations for the year, Alphabet CEO Sundar Pichai added that the companys sales force increased by more than threefold, while revenue contribution from channel partners more than doubled. Read More

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But Alphabet as a whole, isnt exactly operating at a loss. The company
brought in $257.6 billion in revenue last year, up 41% on 2020. Net income
was $76 billion, up almost a third (32%) year-on-year. Last year was the
first time Alphabet crossed the $200 billion threshold for revenue, earning more than ten times what it did in 2009, when it earned $24 billion.

Q4 saw ongoing strong growth in our advertising business, which helped millions of businesses thrive and find new customers, a quarterly sales
record for our Pixel phones despite supply constraints, and our Cloud
business continuing to grow strongly, Pichai said in a statement.

Just in its advertising business, and just for the quarter, the company raked in $61.24 billion. Here's our list of the best bare-metal hosting services
out there right now

Via: The Register



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Link to news story: https://www.techradar.com/news/google-cloud-is-still-losing-buckets-of-money/


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