Google is living the highlife lately, with the recent quarter bringing in a cool $26.1 billion. Even a fine from the European Commission worth $2.74 billion isn’t enough to dampen their spirits. The latest rise in revenue, which offers about a 21% year-on-year boost, shouldn’t come as much of a surprise to followers of Google success.
The segment in the results referred to as “other revenues” contains the cloud business unit, as well as the app store “Google Play”. This particular section grew about 42% recently, to a huge $3.1 billion. Although that amount only accounts for about 12% of the current total revenues, this just goes to show the significant size of the Google advertising business. A quarterly revenue of about $3.1 billion could make the cloud a heavyweight in business.
Serious Growth for Google Technology
The incredible growth in the Google cloud sector doesn’t even necessarily consider the artificial intelligence elements of the business either. The IaaS (Infrastructure as a Service) solution is currently one of the most popular available, but the Deepmind AI could be a clear market leader in the eyes of some. Google is continuing to lead the shift to AI-driven computing, and according to Sundar Pichai, Google CEO, the brand is working on making this technology available across the globe.
One area that’s also frequently forgotten about when it comes to measuring Google success, is the video giant YouTube. As one of the most popular apps and websites on the planet, it’s surprising that it’s often overlooked when considering the huge numbers being seen by Google’s financial segment.
YouTube is just one of the many Google products that are currently seeing significant growth on a global level. YouTube now has about 1.5 billion monthly viewers, with people watching an average of about 60 minutes per day on tablets and phones. As the appetite for video continues to grow, it won’t be long until this is one of the channels bringing in the most significant revenues for Google.
Where is Google Headed Next?
Google and the assets it holds are gradually moving away from the world of smaller screens, and into the wider world outside of the computer. One area where we’re seeing a notable rise in this is the market for smart assistants. The IoT segment and the smart home represent a huge market for companies like Google who have taken on virtual assistants as a new stream of revenue.
Of course, the competition is fierce, with Apple Siri and Amazon Alexa causing some serious discomfort. Additionally, Microsoft Cortana may pose a threat too. Google Smart Home devices are selling particularly well, bringing Google Assistants directly into the living rooms of paying customers. Additionally, the Pixel handset is making a dent too. Android is by far the market leader for operating systems, while Google represents the biggest search engine, and YouTube represents the biggest video platform.
Google has countless paths through which to reach out to the consumer, collecting touch points and data for virtual assistants. The wider the current penetration goes; the more opportunities Google might have to bulk the business out into unexplored sectors. Google may already be one of the most influential businesses on the planet, but its power still has room to grow as it overwhelms the rest of the digital market.