Google Cloud Financial Performance from Time to Time- How Google Cloud Contributes to Google Business. Google LLC or commonly known as Google is the leader of technologies companies in alongside with Amazon, IBM, Oracle, Apple, Meta (Facebook), and Microsoft . Founded on September 4th, 1998, by Sergey Brin and Larry Page. Both of them are Ph.D. alumni at Stanford University in California. Under their guidance, Brin and Page, google has grown and become one of the giant technology companies in the World. In 2021, Alphabets (Parent of Google) has 132 thousand of employee across the nations and has Headquarter in Mountain View, California, United States of America. To date, on the internet sector, Google search engine or simply known as Google.com still become one of the most visited websites in the world. The growth of their business was reflected by Its assets. Financially, as of December 2021, Alphabet has recorded 359 billion US Dollars of assets and 76 billion US Dollars of net income.
In the early period, Google is the search engine platform. At that time, they tried to compete with “Yahoo” as the leader in search engine of Internet in the period of 1990s and 2000s. With all of effort and hardworking, they can grab the market of Yahoo and overtake the position. Finally, they have dominated the search engine world and with their incredible innovation, they tried to build new platform of internet business. Not only in search engine but also in some areas of internet industries, they have launched many unimaginable products that beyond the people expect. Some of their innovations are Android, Google Chrome (Browser), Google Cloud, Google Maps, Gmail (e-mail), and any other breakthrough products.
Source of the Alphabet Inc Revenue
As of December 2021, Alphabet, the parent company of Google, has some source of revenue. Many of them came from the internet platforms, software, and database platform. Here is the source of google revenue in 2021. All of the database was obtained from Income statement of Annual Report of Alphabet in 2021.
Table of Source Revenue of Alphabet and Google in 2021
| Source of Revenue of Google (Alphabet Inc) | Total Revenue in 2021 |
|---|---|
| (Million US Dollars) | |
| Google Search & other | 148,951 |
| YouTube ads | 28,845 |
| Google Network | 31,701 |
| Google other | 28,032 |
| Google Cloud | 19,206 |
| Other Bets | 753 |
| Hedging gains (losses) | 149 |
| Source: Alphabet Annual Report, 2021 | |
Some of Alphabet revenue in 2021 can be breakdown into some google platforms that has biggest contributors of revenue. Many of us may know some of Google Platform and nowadays, many people depend on it daily.
As of December 2021, the main contributor to Alphabet’s revenue came from Google Search & other with nominal value around USD ($) 148,951 million, Followed by YouTube ads USD ($) with 28,845 million, Google Network that contribute USD($) 31,701 million, Google other USD($) with 28,032 million, Google Cloud USD($) with 19,206 million, Other Bets with USD($) 753 million, and Hedging gains (losses) with USD($) 49 million. Finally, all the data was obtained from Alphabet Annual Report in 2021. All the variables and data came from Annual Report in 2021.
The Contribution of Google Cloud to Google and Alphabet Revenue
Google cloud is the innovative products from Google. This company sees the opportunities due to the development of internet Industries. Historically, Google Cloud was launched on April 7, 2008. Some of the developed application has improved from time to time.
Commonly, Google Cloud consist of Google Cloud Platform and Google Workspace. Firstly, Google Cloud Platform enables developers to build, test, and deploy applications on its highly scalable and reliable infrastructure. Furthermore, Google Workspace collaboration tools — which include some applications like Gmail, Docs, Drive, Calendar, Meet and more — are designed with real-time collaboration and machine intelligence that help people work smarter.
The Google Cloud Revenue and Contribution to Alphabet
in 2017, the google cloud contributes around 4,056 million US Dollars. It has increased from 2018 to 2021. the revenue of google cloud in 2018 is 5,838 million US Dollars, in 2019 became 8,918 million US Dollars, in 2020 turned into 13,059 million US Dollars, and Lastly, in 2021, the Google Cloud revenue reached 19,206 million US Dollars. However, there are some gradually increasing value, the contribution of google cloud still in the minor contributors. Financially, the google cloud just contributed 4%-7% to Alphabet revenue in the period around 2017 to 2021.
Meanwhile, it has minor contribution. In the future, many opportunities to increase the revenue contribution still can happen. The high potential demand of cloud computing from many people, companies, and institutions probably can weight the revenue of Google Cloud in the Futures.
Bibliography of Google Cloud Financial Performance from Time to Time
Alphabet.2022. Alphabet 10-K. Accessed via https://abc.xyz/investor/ on March 23rd, 2023.
Wikipedia. 2023.Google Cloud Platform. Accessed via https://en.wikipedia.org/wiki/Google_Cloud_Platform on January on March 23rd, 2023.
Wikipedia.2023.Google. https://en.wikipedia.org/wiki/Google on March 23rd, 2023.