Continuing its run as the world’s fastest-growing major cloud provider, Google Cloud is winning customers across the globe because of its unique capabilities in four strategic areas, according to Alphabet CEO Sundar Pichai.
Late last month, Alphabet disclosed that Google Cloud Q2 revenue jumped 36% to $6.3 billion, putting Google Cloud at the top of the high-growth list ahead of SAP (34%), AWS (33%), and Microsoft (28%). (For more detail on that and a sneak-peek at the eye-popping cloud-growth numbers Oracle just might report in early September, please see my recent Cloud Wars Minute episode on the Hottest Q2 Cloud Vendors.)
Before I spell out Pichai’s four reasons why customers are loving Google Cloud and pushing it to the top of the growth chart, take a look at the broad cautionary note Pichai made on the July 26 earnings call about the fiscal prudence Alphabet is reinforcing across the company. Within that comment, Pichai cites 3 business units within the sprawling Alphabet empire that will continue to receive significant growth funding — and Google Cloud is one of those three.
The other two are AI — one of the most powerful and transformative technologies of our time or perhaps any time — and Search, the category that 15-20 years ago turned Google from a hotshot startup with a zany name into one of the world’s fastest-growing and most powerful corporations. (And in the process turned “google” into a verb).
That offers some compelling evidence of how strategically essential Google Cloud has become to Alphabet in the 3-1/2 years since Thomas Kurian took over as CEO of the cloud unit
“We will continue to invest in areas like AI, Search, and Cloud,” Pichai said on the call, “and we’ll do it responsibly and in a way that is responsive to the current environment.
“Earlier this month, I announced that we’ll be slowing our hiring and sharpening our focus as a company. We’re focused on hiring engineering, technical, and other critical roles. And we’re working to improve productivity and ensure that the great talent we do hire is aligned with our long-term priorities.”
Later in the call, Pichai said the businesses are “choosing Google Cloud as their technology partner because of our leadership in four areas,” and here are the highlights from Pichai’s comments on each.
1. Data Cloud
“First, we continue to lead in the data cloud market” — I’m not sure that’s an accurate statement, but there’s no question that Google Cloud is becoming more of a force in that booming market — “because we unify data lakes, data warehouses, data governance, and advanced machine learning into a single platform that can analyze data across any Cloud.”
2. Modernizing IT Environments
“Second, companies like Beta Bank and Mayo Clinic choose our open cloud infrastructure to modernize their IT systems on our cloud, at the edge, or in their data centers. Our infrastructure scales to help customers like Deutsche Telekom modernize its network, Wipro to modernize its core systems, and Garvan Institute of Medical Research to process 14,000 genomes in under two weeks. Our multi-cloud strategy remains a differentiator for customers like Elevance Health, formerly known as Anthem, and AMD.”
3. Cybersecurity
“Google has always provided a secure cloud infrastructure, and we continue to introduce new cybersecurity products that help customers detect, protect, and respond to a broad range of cybersecurity threats.
Customers like GitLab, Highmark Health, and Iron Mountain protect their critical systems and data with our products. Caribou Coffee and Etsy are among the 5 million websites protected by our cybersecurity technology.”
4. Collaboration Tools
“Google Workspace’s easy-to-use and secure communication and collaboration tools continue to be chosen by many organizations as they return to hybrid work. Google Workspace helped St. Luke’s Medical Center, a leading healthcare system in the Philippines, address a 38% increase in telehealth visits during the pandemic. Results like this are driving growth in many customer segments around the world, including digital natives like Canva, large enterprises like Travis Perkins PLC, and public sector institutions including the Central Dutch Government.”
