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From what I'm aware, a lot of these larger companies basically treat other parts of the business the same they would customers; very important customers, but cu
by Aromasin 4y ago
From what I'm aware, a lot of these larger companies basically treat other parts of the business the same they would customers; very important customers, but customers all the same. If YouTube wants more cloud budget, it comes out of their budget and goes into revenues of the Cloud business unit. Not quite that simplistic of course, but in essence it's meant to drive competitiveness. No special privilege's just because you're part of the same team. If an external company is paying more, for more compute, the business goes to them.
- bpodgursky 4y agoYeah I think this is generally true, although YouTube is a weird case because there's literally no equivalent customer with even a fraction of the compute volume.
- curiousllama 4y agoThat stuff still comes with special privileges. E.g., yes they'll "pay" for compute, but they'll do so at cost. And they're also allowed to deploy a monitoring widgets to other orgs' data centers to find when they're at low utilization, and then argue "at cost" is actually near 0, because the compute resources were just sitting around anyway. And then have the search team agree because YouTube promises to build the new data API search has been asking for forever. If you ultimately report earnings on the same P&L, USD is just monopoly money you trade around to get things done.