Google Cloud’s run rate is now over $8B – gpgmail


It’s been a while since Google last shared any fundamental financial data about its cloud business. In today’s earnings call, though, Google CEO Sundar Pichai, who recently installed former Oracle exec Thomas Kurian as the new head of Google Cloud, announced that this business unit now has an $8 billion annual revenue run rate. That’s up from the $4 billion the company reported in early 2018.

While Google often felt like an also-ran in the cloud wars, it’s clearly starting to make up some ground. “Other cloud providers would have you believe that no one is using Google, which is not true,” Kurian told me when I talked to him earlier this year. Now he can put some numbers behind this claim.

To put that into perspective, AWS’s run rate topped $30 billion last quarter while Microsoft Azure is somewhere around $11 billion, though concrete numbers are hard to come by.

“Q2 was another strong quarter for Google Cloud, which reached an annual revenue run rate of over $8 billion and continues to grow at a significant pace,” Pichai said. “Customers are choosing Google Cloud for a variety of reasons: reliability and uptime are critical. Retailers like Lowe’s are leveraging the cloud as one of the important tools to transform their customer experience and supply chain.”

Pichai also noted that customers want the flexibility to move to the cloud in their own way, something that some of Google’s competitors — and especially Microsoft — focused on before Google got to this point. With Anthos and other initiatives, the company is now catching up, though.

Unsurprisingly, Pichai also stressed Google’s role in pushing AI forward at a time when enterprises are starting to look at how they can make use of this technology.



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Google says it doubled Pixel sales year-over-year – gpgmail


It looks like the mid-range Pixel 3a is the hit Google surely hoped it would be.

Alphabet reported some pretty good earnings today, but the company’s report tends to be pretty generic, given that it doesn’t provide details for its different business units inside of Google and its other segments. That’s not to say there isn’t good news there for Google. On today’s call, Google CEO Sundar Pichai shared some new stats for the company’s phone line.

“With the launch of Pixel 3a in May, overall Pixel unit sales in Q2 grew more than 2x year-over-year,” Pichai announced. Part of this growth, he noted, is due to Google greatly expanded its distribution network beyond its own store and Verizon to also include T Mobile, Sprint, US Cellular, Spectrum Mobile and others. He also stressed that the Pixel 3a received Google’s highest Net Promotor Score rating yet.

We don’t, of course, know, what the baseline for Pichai’s claim here is, since Google never shared any actual sales numbers, but it surely helps that the Pixel 3a is relatively affordable and compares well to flagship phones without any major trade-offs. When it launched, reviews were generally very positive, too, which surely helped as well. Unlike previous Pixel launches, the first batch of Pixel 3a phones also didn’t face any major hardware problems, something that regularly plagued Google’s earlier efforts.



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