a picture of google company

On 27th July 2021, following a solid financial statement for Q2, 2021, Alphabet released its financial results for Q2, 2021, describing its future growth goals to generate $61.9 bn of revenue – a substantial YoY rise of 62%. Google Search, Youtube, and Google advertisements, for a total of $57 trillion, produced the majority of this turnover. However, Google Cloud was the greatest surprise in the research. 

Google On The Rise

The business has not only increased its YoY revenue by 54 percent and reaches an astounding $4.6 billion in 2021; its losses have decreased considerably from $1.4 billion in the second quarter of 2020 to $591 million in 2021. However, everyone predicted that Google Cloud would eventually achieve a split with steady growth — no one expected this to be done in such a dominant way. 

The study verifies the financial health of Google Cloud as it continues to compete for market dominance with one of the highest rates of growth in the cloud computing industry for any cloud vendor. For years, the enterprise has taken the third step of the podium, but Amazon Web Services (AWS) is now in second place. At the same time, Microsoft’s Azure is at the lead in raw growth for now. 

Over half (58%) of cloud spending in Q1 2021, the three major cloud vendors—AWS, Azure, and Google Cloud spent 32%, 19%, and 7%, respectively, of the total $41.8 billion. 

What’s Increasing?

Increasing numbers of companies continue to utilize the cloud for all aspects of hosting, extensive data, app development, machine learning. Cloud computing has continuously been one of the fastest-growing sectors. Sundar Pichai, Chief Executive Officer of Google and Alphabet, noted in the study: “AI and Google Cloud have been making substantial improvements to everyone’s digital experience.” It is projected that the sector would expand to $852 billion in market value by 2025. 

The report also showed Google’s other business segments’ financial health. Google’s 62 percent portion of income came from services relating to Google Search. It amounted to 35 billion dollars, up from 21 billion dollars the previous year. YouTube generated $7 billion in income with an astonishing 84% rise of the YY. 

Microsoft also published its Q2-cloud growth report the same week. Intelligent Cloud of Microsoft climbed 30 percent to 17.4 billion dollars from Q2 last year. A similarly astonishing 51 percent rise for YoY in Azure. In general, the number of cloud suppliers in 2021 will increase considerably as organizations actively eliminate cloud-enabled products.