Cloud

Google Q2 earnings: 3X increase in $500,000+ cloud deals

Google CEO Sundar Pichai noted on a recent call that the firm's cloud division was making serious moves, highlighting the fact that Google's financial future is in the cloud.

If Google's recent Q2 earning call was any indication, the cloud continues to be big business for the search giant. Specifically, the company has seen strong growth in its larger cloud deals, those valued over half a million dollars.

"In Q2, the number of big deals we closed worth more than half a million dollars is three times what it was last year," Google CEO Sundar Pichai said on the call. "Responding to the growth in existing and new customers around the world, we continue to invest in data centers to provide them the fastest most reliable service."

Alphabet, Google's parent company, doesn't break down revenues for each individual division, grouping many of them together into larger chunks instead. Google's cloud efforts are listed among its "other revenue" segment of its earnings report, which grew 42.2% in the past year from 2.17 billion to 3.1 billion.

SEE: Learn Cloud Computing From Scratch (TechRepublic Academy)

The big cloud deals were also paralleled by a strong increase in hiring for the cloud division as well.

"The most sizeable headcount additions were once again made in cloud, for both technical and sales roles, consistent with the priority we place on this business," Alphabet CFO, Ruth Porat, said on the earnings call.

While it isn't clear if cloud was the single biggest revenue increase for Google this quarter, Pichai did note on the call that it experienced "impressive growth across products, sectors and geographies."

On the Q2 earnings call in 2016, Pichai pointed to the company's work in AI and machine learning as part of its success. Machine learning and AI are also largely regarded as Google's big strength in the cloud, and it has started to weave those technologies into its other core offerings as well.

Google Cloud Platform officially l aunched in 2008 as Google Compute Engine. It is regarded as one of the top three public cloud providers, following Microsoft Azure and Amazon Web Services (AWS).

The 3 big takeaways for TechRepublic readers

  1. On its Q2 earnings call, Google announced a 3X increase in its cloud deals valued over $500,000.
  2. Alphabet CFO Ruth Porat also noted that the firm had hired some 1,614 people in Q2, with much of that being driven by headcount added in its cloud division.
  3. Machine learning and AI are Google's core strengths in the cloud, as it competes against AWS and Microsoft Azure.

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Image: iStockphoto/Kalawin

About Conner Forrest

Conner Forrest is a Senior Editor for TechRepublic. He covers enterprise technology and is interested in the convergence of tech and culture.

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