Google CEO Acknowledges Cloud Rivals But Remains Optimistic

Google Chief Executive Officer Sundar Pichai acknowledged that the company's cloud division is facing intense competition from Microsoft Azure and Amazon Web Services but is still convinced that this particular market is "far from a zero-sum game" and remains largely unconcerned about the growth of its two larger rivals. While speaking to analysts following the publication of Alphabet's consolidated financial report for the second quarter of the year on Monday, Mr. Pichai once again touted the company's Google Cloud Platform but presented a more amicable perspective on the cloud market in the United States and abroad than what the firm's executives have been saying in recent years, often with the goal of downplaying the quality of their rivals. Despite boasting about Google's growth in the field, the CEO hence conceded that both Azure and AWS have been growing as well.

The development raises concerns about Google's long-term prospects in the industry that's already generating tens of billions of dollars in annual revenues; while the company has been committing significant resources to innovation and security, particularly solutions powered by artificial intelligence technologies, it's still unclear whether its cloud growth is attributable to those efforts or is simply a side effect of wider industry trends and will be challenged once the market reaches a point of saturation and cloud service providers start competing with one another in a more direct manner. Mr. Pichai still asserted there are "wrong" platforms for businesses to choose from and predicted that multi-cloud strategies will become a more prominent trend in the industry moving forward.

Google's latest move in the segment came in the form of a partnership with an American blockchain startup Digital Asset that's meant to facilitate the process of building applications powered by online ledgers on the Google Cloud Platform. Along with AI, the cloud sector is presently one of Google's most promising growth avenues, even as the segment still isn't generating massive profits relative to the size of the firm. That division is still tracked as part of Alphabet's "Other Bets" which made $4.425 in revenue over the second quarter of the year, whereas the conglomerate as a whole had a record $32.7 billion turnover during the same period.

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Dominik Bosnjak

Head Editor
Dominik started at AndroidHeadlines in 2016 and is the Head Editor of the site today. He’s approaching his first full decade in the media industry, with his background being primarily in technology, gaming, and entertainment. These days, his focus is more on the political side of the tech game, as well as data privacy issues, with him looking at both of those through the prism of Android. Contact him at [email protected]