6 ms·
Revenue up 26% YOY (good but expected). Big one for me is advertising segment revenue as % of total segment revenue, down to 86.3% from 87.4%, which is good, th
by philipodonnell 8y ago
Revenue up 26% YOY (good but expected). Big one for me is advertising segment revenue as % of total segment revenue, down to 86.3% from 87.4%, which is good, they have got to diversify away from ads eventually.
Disappointing to see the "other bets" still at a paltry $145M and losses are growing faster. Also no mentioned whatsoever of cloud performance. Employee count up 15% but < NI growth. (does anyone know if this includes temporary staffing for things like streetview drivers?)
Wow, that was a big fine though.
- lazharichir 8y agoAs a user of GCP, they are moving with new useful products every few weeks. And it's a lot clearer as an offering than the top competitor. Perhaps fewer settings, but much easier to get your head around it. A lot of developers use it as a go-to, let's see how companies react over the next years. And Google Cloud Next '18 from tomorrow, so surely few announcements to come.
- mathattack 8y agoAre you an individual user or corporate? Their reputation for large enterprises has been not enough handholding to accompany the complexity. (Relative to IBM/AWS/Oracle) I’m curious about your experience.
- topicseed 8y agoBoth, but small company. But I agree with you, although thry are slowly attracting very large accounts — thanks to discounts surely, but at least they get some names, which will get some names as ROI. Well worth the huge discounts, if it all pans out.
- mathattack 8y agoI assume over the long haul they will be the low cost producer. They need to learn to sell and support in a higher touch manner to bring in the large corporates.
- karpodiem 8y agoThis is why Azure is outpacing AWS/GCE.
- relaunched 8y agoMicrosoft's Enterprise sales force is second to none and they are clearly the number 2 in the cloud space. However, shifting office365 (a SAAS offering) to be reported as cloud revenue is disingenuous.
- zeusk 8y agoIt runs on Azure, ties in with Azure AAD, Microsoft Dynamics 365, Microsoft Graph, and is offered as part of "Microsoft 365". What's so disingenuous about that?
- relaunched 8y agoCloud is generally accepted as a series of P / IAAS offerings, where clients are paying for infrastructure. Office365 is a SAAS offering, where clients are paying for software that does something, that happens to be hosted in the cloud. In the context of Microsoft's, Google's, Amazon's cloud businesses, Microsoft is comparing apples & oranges to everyone else's oranges.
- zeusk 8y agoCloud is literally any service or offering that is hosted and served over network from 1st party DCs. Office365 meets that requirement quite well. Also, SaaS is part of cloud[0]. [0] https://en.wikipedia.org/wiki/Software_as_a_service https://en.wikipedia.org/wiki/Software_as_a_service
- relaunched 8y agoBy extending that definition, would ~90% of Google's revenue be cloud revenue?
- zjaffee 8y agoAs a large corporate user I had a fairly poor experience using google cloud.
- murukesh_s 8y agoWhat issues did you face? Lack of support? Onboarding issues?
- zjaffee 8y agoMostly lack of support, unwilling and unable to add capacity in the way AWS is capable of, and other clear technical issues with their services.
- murukesh_s 8y agoOk ya google was notorious for not providing proactive support especially enterprise customers demand a direct phone line to support team. Regarding capacity why would you consider google when you were in AWS? Was it due to pricing considerations?
- mrep 8y agoHow recently have you heard as I read somewhere recently (cannot find yet currently but looking) that Diane Greene massively increased their sales and support staff once she joined as head of cloud?
- mathattack 8y agoI’ve heard horror stories as recently as two weeks ago.
- simonebrunozzi 8y agoCurious to why you say "top competitor" instead of AWS. Pretty much everybody knows who you're talking about. (disclaimer: I worked at AWS from 2008 to 2014).
- chickenfries 8y ago> Pretty much everybody knows who you're talking about. Then saying "the top competitor" is useful to the small number of people who don't.
- senatorobama 8y agoWhy do people add disclaimers to clarify where they worked? No one cares.
- snksnk 8y agoThe main story here is the decrease in EBIT margin (i.e., operating margin) and the development of the monetization metrics.
- MarkMc 8y agoAs an Alphabet shareholder I'm quite happy with revenue heavily focused on advertising, since that is where I see the biggest growth opportunity. In fact I would like Alphabet to spin off their Waymo self-driving car company so I can sell my share in it. If other shareholders want to diversify they can just sell their Alphabet shares and buy a range of other stocks.
- tim333 8y agoWhile "other bets" are not showing much income, Waymo looks like it will be a big win.
- anonymous5133 8y agoYeah, I think the ad spending as % of revenue is a serious problem. When the economy goes into the next recession I can see google getting crushed as companies cut their ad spend.
- mooreds 8y agoI dunno. I think ad spend overall will be crushed in the next recession but expect google to actually grow share. The power of retargeting plus intention based advertising means you can actually know "which half of your advertising is working".
- bobdole12345 8y agoWhy would they want to move away from ads? Advertising is one of the more recession proof industries, when everyone else is suffering, it just keeps right on going.