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By 2020, Google should become a "cloud company"

Urs Hölsle, head of the cloud division of Google, believes that over the next five years, the corporation’s cloud business will generate more revenue than advertising. He expects to grow from Google "cloud company" by 2020.

Such a bold statement foreshadows major changes in the business of the corporation. After all, at the end of 2014, 89% of Google’s revenue was provided by advertising. In the third quarter of 2015, Google's revenue from advertising on all platforms amounted to $ 16.8 billion. This is a 15% increase over the same period in 2014.

In addition, the company's cloud business is still losing to the leading cloud computing market players - Amazon Web Services and Microsoft Azure . However, Urs Hölsle believes that the Google Cloud Platform is probably the highest growth rate in the industry. Therefore, after some time, the lag is noticeably reduced. Already, the company has a lot of corporate clients, moreover, “happy corporate clients,” as Hellsle put it.
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He compares the development of the cloud computing market with the smartphone market: in 2007, the iPhone was the first, but it gave an impetus to the increase in demand for smartphones. So, despite the late start, Android OS has become the most popular operating system in the world. Heltsle believes that the Google Cloud Platform will follow the path of the Android system, reports Business Insider.

According to him, Google will be able to provide customers with services at increasingly lower prices, in parallel raising the bar for performance. The Google Cloud Platform has both scale and technology, since the same data centers that run the Google search engine work with it, as well as Gmail, YouTube and all other services. Every day, these services are used by billions of people.

Over the years, the existence of cloud services, Google has added some features that made them more competitive, and in 2013 the entire product was renamed, called the Google Cloud Platform. The company began to attract major customers such as Coca-Cola, General Mills and Best Buy, as more options for businesses were added to the cloud.

But so far, not Google, but Amazon Web Services and Microsoft Azure are slowly luring customers from old companies with their constantly decreasing prices and first-class features.

For example, Amazon recently launched a service that can be called the "killer" of the Oracle Cloud , as it is clearly intended to move Oracle databases to Amazon Web Services.

Meanwhile, Oracle is preparing to launch several of its competing services Amazon Web Services. After six months, Oracle will launch several cloud services, the largest of which will be Elastic Compute Cloud. In terms of functionality and even name, it is similar to Amazon Elastic Compute Cloud, which provides computing power in the cloud.

In early 2015, Oracle began work on a cloud project, which, as conceived by developers, should be the "killer" of Amazon Web Services.

Source: https://habr.com/ru/post/296496/


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