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That's crazy! How are they losing so much money on such a high-margin business? AWS and Azure are basically printing money.
by TheCoelacanth 6y ago
That's crazy! How are they losing so much money on such a high-margin business?
AWS and Azure are basically printing money.
- influx 6y agoFrom what I hear they are giving out sweetheart deals to large customers that aren't making money, but hey they can claim to run "X" company's cloud instances.
- raiyu 6y agoI’m sure they are still heavily investing in CapEx given their growth. You have to remember that AWS had a more linear path so capex investment was spread out over a longer time line. Meanwhile Google had to rebuild all of AWS infra and capacity basically over night. That coupled with high revenue growth leads to a large loss in the build out years. As revenue increase YoY slows down that loss will begin to narrow.
- QuinnyPig 6y agoGenerally capex won’t hit the Cloud division explicitly; this is something else. Hmm.
- hehehaha 6y agoMy guess is they’re giving away a lot for free. Firebase free tier is almost too generous.
- anonacct38 6y agoSame reason Amazon didn't show a profit for years. Just means they are continuing to spend more than they make in an effort to grow and to find those killer apps and services that will make them the dominant player.