There is no doubt that with the rise of smart phones, Google's search business is also facing the risk. It is precisely because of this, Google has been making great efforts to do a few major projects in order to diversify income, reduce the risk of advertising business. These projects include cloud services, which now have 16.5% market share, the next few years have the potential to further increase the share.
Amazon is currently the market leader, with 37.1% share, followed by Microsoft, which is 28.4%. In other words, the remaining grab can not grab the main opponent's share is 18%. Amazon's come from behind also attracted the Google cloud concerns.
However, Lei Feng has reported that it is predicted that this year the global market value of cloud services market as high as 154 billion US dollars, by 2026 will climb to nearly 500 billion US dollars. Even if Google only maintain the current market share, it will be the main source of revenue growth. With the cloud computing market demand for tools more and more, Google's market will continue to grow in the next few years, the only problem is, from which companies will grab the share of the hands.
Google will be hardware, Play stores and cloud services together into the earnings in the "other" category, the previous quarter, an overall increase of 62% to 3.4 billion US dollars. So the outside world is difficult to determine the exact data of cloud services, but it seems that cloud services should be in support of the other & rdquo; growth. From the company's own comments on the growth of cloud services, the cloud is also the main driving force, it is likely that nearly 20 billion dollars can be attributed to the cloud. From the whole year, "other business" increased by 41%, so it seems to be accelerating growth.
It is particularly noteworthy that, for cloud services, Google has been gradually from the provision of servers to provide more advanced features, and these are its advantages.
Google said that more than 3 million companies are currently paying for their G Suite, a cloud-based collaboration and productivity application. This momentum has also brought more power to Google, the previous quarter has been Intel, Improbable, Slack, Pivotal and Red Hat and other companies began to cooperate with it.
Raymond learned that it has identified four areas in its latest earnings report: data analysis and machine learning, security and privacy, application development tools, and the ability to create a connected business platform.
Where will Google break? While these four areas are important for cloud services, Google is really highlighting data analysis and machine learning, which may be the case where cloud services are growing, and it can distinguish it from other rivals and stand out.
"At the cloud service conference some time ago, Diane Greene, head of Google Cloud, said that the cloud with the most advanced technology was the best cloud." The end of last year, the company also introduced the field of AI Shen Fei joined the gods.
In the field of data analysis and machine learning, Google has a leading edge over Amazon and Microsoft, and has the potential to grow significantly in cloud business. This capability is also in line with the trend of the Internet of things, according to Gartner predicted by 2020 is expected to have 25 billion network equipment. Google's ability to make it more customers to increase their use of cloud services.
Google also attack several different markets at the same time, in order to reduce the risk of advertising business. In addition to the cloud, there are other YouTube streaming services, unmanned vehicles. Unmanned potential Needless to say, but can not be considered a profit project in the near future. Low-margin streaming media business is also difficult to appoint the task.
Therefore, in the next few years, Google cloud platform will become the company's advertising business outside the most important growth engine, and then by the unmanned business take over. This trend has been shown in the recent earnings report.
It is also because the cloud service is now the only major source of revenue, so Google has to go all out to it. Even if Google can not catch the previous two, at least narrow the gap.