A nearly $8Bn is the Cloud technologies contribution towards the company’s overall revenue.
The move is a tough ask although for the technology giant as the Alphabet-Owned Google had actually considered for stopping abruptly all its cloud business the previous year due to “profitability concerns”, which was later recalled from the firm’s top brass who have now taken an affirmative decision of investing much more than expected.
The prime motive behind this sudden move is to surpass and overtake the tech rivals and top 2 contenders Amazon and Microsoft, under a span of 3-4 years. As per the data and report compiled from The Information, a US digital media company on Tuesday stated that “During the next four years period the Google and its entire unit which is already facing immense pressure from top management have taken a stern decision of overtaking the immediate market share of its rivals Amazon or Microsoft or risk losing funding, the latter not to be in their history.
By 2023 Google’s prime shift is either to outclass one or both of its rivals and be touted as the main Technology cloud force globally.”
The report also stated that third tech giant company’s thriving efforts and it’s top leadership brass who are said to have discussed “Who and what would be the best solution provided to lead (Cloud) technology effort and the primary issues that can arise in the wake of competing as well as planning on other areas differentiable from technology, like sales and marketing, logistics and supply chain management areas.
Former Oracle President Thomas Kurian was appointed as the chief executive of Google Cloud in January this year as he was the prime contender in the previous year’s meeting.
For propelling up Google’s Cloud Business Mr. Kurian hired a huge number of sales agents and as well as top-level executives from enterprise software giants like SAP and Oracle. However, as usual, this drive took a heavy surge in the investment and which in turn took a heavy toll on the overall company’s earnings as its (Alphabet’s) overall profit tanked down 23 percent to be at $7.07 billion (Dh25.97bn) in the third quarter as recorded on September 30.
The overall quarterly expenses shot up to being the company’s highest-ever quarterly expense to see an upsurge of 25 percent year-on-year to $31.3bn during this period.
Despite all the thriving efforts going down in vain and the profits dipping, Alphabet’s Chief Executive officer Sundar Pichai is daring and confident regarding the prospects of the company’s cloud business. Mr. Pichai during a statement in July affirmed that annually the total turnover as contributed via Cloud for the company is overall $8 billion and the firm plans for tripling its sales workforce during the next few years even if it means doubling up the investments.
He additionally stated that “Cloud is the prime driving force for Alphabet’s growth.”
Google, which distantly stands third post its rivals Amazon and Microsoft for the Cloud Business, has propelled up a mass expansion drive plans by surging up number of its cloud backed regions to 23 within 2020 as company plans for opening up six latest cloud data centers early the upcoming year – three each in Seoul and Utah.
As reported by The Information company has dictated the terms and have approved in “An overall five-year budget of $20bn in spending for a data centre buildout and as well as building other outlays” as being the essence for the expansion of Google’s cloud capacity in the upcoming three to four years down the line.