Google just reported cloud revenue for the first time ever, showing that it's growing fast but nowhere close to Amazon Web Services

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  • Google on Monday reported quarterly revenue for its cloud business, disclosing that the platform which seeks to challenge Amazon and Microsoft is now on track to rake in about $US10 billion in annual revenue.
  • Google Cloud, the search giant’s cloud computing unit, reported revenue of $US2.6 billion in the fourth quarter of 2019, up about 53% from the year-ago period. That’s a solid report card for Thomas Kurian, who just wrapped his first full year as CEO of Google Cloud.
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Google on Monday reported revenue for its cloud business for the first time, disclosing that the platform which seeks to challenge Amazon and Microsoft is now on track to rake in about $US10 billion in annual revenue.

Google Cloud, the search giant’s cloud-computing unit, reported revenue of $US2.6 billion for the last three months of 2019, up from $US1.7 billion in the year-ago quarter – translating into growth of about 53%. That’s a solid report card for Thomas Kurian, who just wrapped his first full year as CEO of Google Cloud.

Google had reported in July that its cloud platform had an annual revenue run rate of $US8 billion, which impressed some Wall Street analysts. It was the first time the company had disclosed the financial performance of its cloud business in more than a year.

Google Cloud encompasses G Suite, the company’s cloud productivity suite, as well as Google Cloud Platform, which offers hosted computing capacity from its own massive data centres.

“I’m really pleased with our continued progress in Search and in building two of our newer growth areas – YouTube, already at $US15 billion in annual ad revenue, and Cloud, which is now on a $US10 billion revenue run rate,” Sundar Pichai, CEO of Alphabet and Google said in a statement.

Google’s report shows it still lags the dominant players in the cloud market, Amazon Web Services and Microsoft Azure.

AWS reported about $US9.9 billion in revenue for the most recent quarter, meaning that it more or less quadruples Google Cloud’s revenue growth. While Microsoft doesn’t disclose specific revenue figures for its competing Azure cloud platform, it’s widely considered to lag only AWS in the larger market, meaning that it, too, likely dwarfs Google Cloud.

Google also for the first time disclosed YouTube advertising revenues, which were about $US4.7 billion in the quarter.

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