Alphabet has released results for the first time for its cloud service Google Cloud. It lost 5.6 billion dollars in the past year.
The numbers were released as part of Google’s quarterly results. This shows that the Alphabet has had a solid year. Although the pandemic made it difficult for just about every business, Alphabet managed to increase its sales. Admittedly at 13%, the lowest growth since 2009.
More interesting, however, is that the company is now also publishing figures specifically for Google Cloud for the first time. The tech giant’s cloud service is currently still a significant cost item, but the income from it is growing.
Google Cloud made a loss of 5.6 billion dollars in the past year. Revenues rose to 13 billion in the same period, a growth of 50 percent.
With its cloud service, Google has been trying to catch up with the other major public cloud vendors for some time now: Amazon Web Services and Microsoft Azure. Investors see that the service can generate growing revenues despite fierce competition.
The cloud market itself continues to grow strongly, and for companies such as Amazon, the cloud division is already the largest source of income.