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No. GCP consistently loses money. One of many sources: https://www.theregister.com/2022/07/27/alphabet_q2_2022/ https://www.theregister.com/2022/07/27/alphabet
by coder543 4y ago
No. GCP consistently loses money.
One of many sources: https://www.theregister.com/2022/07/27/alphabet_q2_2022/ https://www.theregister.com/2022/07/27/alphabet_q2_2022/
> Google Cloud brought in $6.3 billion of revenue, a 35 percent year on year increase compared to Q2 2021’s $4.6 billion revenue. But the $858 million loss was 45 percent higher than the $591 million deficit recorded last year.
You might ask: "how is that possible, with those same margin-intensive prices that AWS and Azure use?" I have no clue. It makes no sense, given the prices they charge.
- sidibe 4y agoWhat is or isn't cloud is different at every company on top line but especially bottom line. For example how far down the stack are engineers still considered cloud when they are supporting both cloud and internal products? Investors are fine losing money on growing cloud and also love to see ad margins up? Then everyone is cloud.
- coder543 4y agoI don't think salaries are the driving factor behind GCP's balance sheet, but that's just my opinion. I obviously can't wave a magic wand and find out for sure either, but my own back of the napkin math can't see that reasonably working out. They brought in billions of additional revenue, but their losses also increased.
- zaphirplane 4y agoSimilar reasons to a company with 30 tps 8am - 6pm has a 3 h/a Kafka running on a k8s cluster, multi master MySQL cluster, all the trimmings Built to scale that isn’t here today ? Resume Padding ? Data centers are expensive and slow unto build