Alphabet CEO Sundar Pichai has revealed the company’s success in Google Cloud G Suite (the new brand for Google Apps) in 2016.
The US-based technology major last week said Google Cloud G Suite has more than 3 million business clients.
Google competes with cloud providers such as Amazon Web Services, Microsoft Azure, and IBM Bluemix.
Google revenue has totaled $26.1 billion (+22 percent) in the fourth quarter. “Advertising revenue growth was driven by Mobile Search with ongoing strength in YouTube and programmatic. We also had substantial growth in other revenues from hardware, Play and Cloud,” said Google CEO during the analyst call.
ALSO READ: Alphabet Q4 2016 earnings
Alphabet revenue in the U.S. was up 24 percent to $12.7 billion. U.K. revenue was up 7 percent to $2.1 billion. Rest of world revenue was up 24 percent versus last year to $11.3 billion.
Alphabet has added 2,100 people to touch the total employee base to over 72,000 the end of the quarter. Alphabet hired several engineers and product managers to support growth in priority areas such as Cloud.
Other revenue for Google was $3.4 billion, up 62 percent with strong performance from hardware, Play and Cloud.
In 2016, other revenue grew 41 percent, reflecting the growth in Google Play, hardware and Cloud businesses.
“We’re investing in Cloud and hardware businesses as well as our newer non-ad revenue sources for YouTube in order to accelerate their progress as major revenue drivers for Google in the next several years. We’re investing in the machine learning capabilities and computing infrastructure that will propel Google’s growth over the longer-term,” said Sundar Pichai.
G Suite, the cloud-based collaboration and productivity applications, has more than 3 million paying businesses to collaborate smartly and securely in the cloud.
“Our success with enterprise customers relates to the unparalleled security and data protection we can provide by offering an entirely cloud-based solution that enables an extremely strong level of production,” Sundar Pichai said.
Google announced new alliances including Intel, Improbable, Slack, Pivotal and Red Hat for expanding the reach of GCP and G Suite.
TBR says Google has developed differentiating leadership in machine learning and analytics, security, application developer tools, and connected business platforms. “Of the differentiators, machine learning and analytics as the primary area of leadership for Google Cloud, and the probable driver of 2017 platform uptake,” said Meaghan McGrath, analyst at Technology Business Review.
ALSO READ: Google earnings analysis
TBR, in an analyst report on Google quarterly earnings for Q4 016, said Google Cloud will rely on its investments in accelerating enterprise sales to continue paying off, and for partners to help the firm penetrate new markets as Google Cloud more than doubles its global availability regions.
The partnership with Accenture, in particular, will help Google develop and message clear, industry-specific use cases for machine learning and the GCP suite as a whole, in order to improve mind share and drive uptake in specialized segments.
Cloud infrastructure market
Cloud infrastructure service market report by Synergy Research says 25 percent revenue growth in Q3 enabled AWS to grab 30 percent market share in the final quarter of the year.
Microsoft achieved the highest year-on-year revenue growth, followed by Google, as all three cloud operators outperformed the total market growth and gained market share.
IBM continued to lead in the private and hybrid Cloud service segment. AWS had 28 percent share in Cloud infrastructure market, followed by Microsoft (10 percent), IBM (7 percent), Google (5 percent), salesforce (4 percent) and Rackspace (3 percent).
Baburajan K
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