How does google cloud make money

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Alphabet Inc. Billions of dollars, in fact. But as it prepares to announce third-quarter results on Monday, a new wild-card has emerged: its cloud-related sales are lifting into the stratosphere. AMZN, ORCL, Google CEO Sundar Pichai said in July the company plans to add its cloud sales force as it becomes more of a key growth driver for Alphabet. The executive game of musical chairs is a high-stakes one. Microsoft does not break out its cloud revenue. Read more: Amazon earnings fall for first time in more than two years, stock drops in late trading. Read more: Microsoft earnings trounce expectations, but Azure growth rate continues to shrink. Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google.

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Managed services are a way to make money on the public cloud. Manon Buettner, CEO of Nuvalo ; Angela Hogaboom, founder and president of OpenSky Networks ; and Michelle Ruyle, CEO of Optimized Channel , will talk about how managed services can help partners get not only professional-services fees but also recurring commissions as they lead their clients into the cloud. The panel is presented by Cloud Girls. Buettner, Hogaboom and Ruyle all took time to answer a few questions about hyperscale cloud providers and the channel. The answers were edited for length. Channel Partners: What are the biggest challenges for indirect sellers when dealing with the largest cloud providers? Angela Hogaboom : The biggest challenge is identifying ways to monetize large provider services.

In addition to its advertising business, Alphabet also produces hardware such as Chromebook computers, Chromecast streaming devices, and the Google Home voice-activated speaker. The tech giant also invests in «moonshots,» high-risk, long-term projects like self-driving cars. With that in mind, let’s take a closer look at Google’s core businesses that really drive the company’s results. Google’s products like Search, Android, Maps, and YouTube generally revolve around advertising, and the company divides its advertising business into two categories: performance and brand. Performance advertising is its primary source of revenue and includes businesses like AdWords, the company’s auction-based ad program, which allows advertisers to buy text-based ads on properties like its search pages, and AdSense, which publishes ads on partners’ websites. Brand advertising functions through videos, text, and images that build awareness of advertisers’ products. Growth at Google Network Members’ properties, which is driven by AdSense, was slower, growing by just 3. Looking ahead, Google’s revenue is likely to continue its solid growth as paid search clicks increase, and the company is investing in technologies like artificial intelligence and virtual reality. With its detailed information on users, Facebook excels at ad targeting, while Google’s ads are better applied to searches, such as product purchases or services. Increasingly, Amazon. And there’s a real possibility of one of its other bets such as Google Fiber or Waymo, its automonous vehicle technology division, paying off. Alphabet has been one of the most dependable winners on the stock market since its IPO. With its dominance of search, it has a strong base that can help fuel investment in promising new technologies, setting the company up for success further down the road.

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Investors are pleased with Google. Its parent company, Alphabet, beat analyst expectations by 39 cents a share this quarter and is up more than 4 percent in after hours trading. Most of the money—and growth—came from advertising, which always has been Google’s main revenue stream. But the better news for How does google cloud make money is that it’s seeing growth in how does google cloud make money areas, like cloud computing and Google Fiber. Seeing the company’s growth in search, you might wonder why Alphabet is even investing in things like cloud computing, virtual reality and broadband Internet. Advertising, meanwhile, grew 19 percent, largely on increased revenue from mobile search and YouTube ads. Take a closer look, though, and you’ll see something that’s bothered investors for a few years. Google’s expenses keep growing, even as the amount of money advertisers pay per click shrinks. Put another way, even though Google is garnering more advertising clicks, it’s making less on each one while spending more to get it. Investors want to see widening profit margins, especially from a company Google’s age. That explains why Google is so invested in finding other ways of making money. But it’s still far from profitable, and CFO Ruth Porat said during the earnings call that she expects the service to roll out gradually. In the near term, Google is counting on cloud computing. Alphabet’s «Google other revenues» segment—not to be confused with its «Other Bets»—includes its Google Cloud Platform services, the business-focused Google Apps line, Google Play and hardware. Credit that largely to gains in the cloud services and Google Apps, Porat said. Those numbers aren’t broken out individually, making it impossible to know just how well Google is doing in the cloud. Google is still playing catch-up even as Amazon’s business continues to grow.