Google Cloud revenue surges 45% to $3.44 bn in Q3

Google Cloud revenue rose 45 percent to $3.444 billion in Q3 2020 from $2.379 billion in Q3 2019.
Google Cloud at IT trade show
The annual growth of Google Cloud revenue was faster than Amazon Web Services’ 29 percent, though slightly slower than Microsoft Azure’s 48 percent. Google Cloud CEO Thomas Kurian

Alphabet said it would elevate cloud into a separate reporting unit starting in the fourth quarter, effectively dropping cloud financial results from its Google unit and giving investors their first view into the business’ profitability.

“Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play,” said Ruth Porat, chief financial officer of Alphabet and Google.

Google Cloud maintained its momentum, particularly around its six targeted industries. Its enterprise business accelerated, as it focuses on increasing channel involvement in deals as well as partner enablement.
Cloud market share Q3 2020Google Cloud retained its position as the third largest cloud service provider with a 7 percent share, said Canalys Chief Analyst Matthew Ball.

The convergence of cloud and 5G at the mobile edge will form the next wave of growth for the leading cloud service providers.

Canalys Research Analyst Blake Murray said: “It represents a new front for infrastructure buildout and competition between AWS with Wavelength, Microsoft Azure with Edge Zones, and Google Cloud with Mobile Edge Cloud.”

Google, Alibaba and Tencent are all growing more rapidly than the overall market and are gaining market share. Together they account for 17 percent of the market, Synergy Research Group said.

Google is part of a rapidly growing chasing pack, while other cloud providers are more entrenched in specific niches of the market.

John Dinsdale, chief analyst at Synergy Research Group, said: “The companies competing for a share of the market have settled into three camps. Amazon and Microsoft are in a league of their own, while others are either aggressively seeking to grow their position in the market or are more focused on specific services, geographies or customer groupings.”

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