Cloud computing influences Google and Microsoft’s revenues in the last quater

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When Google began, it all seemed crazy. Many of those crazy things now have over a billion users, like Google Maps, YouTube, Chrome, and Android. Larry page and Sergey Brin original founders of Google wrote in a letter “Google is not a conventional company. We do not intend to become one.” As part of that, they also said that you could expect “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.”

According to the quarterly results released on Thursday, the biggest growth is in businesses that deliver computing over the internet. Alphabet Inc, Microsoft Corp and Intel Corp took the lead with Microsoft’s Azure recording exponential customer sign-ups that doubled its revenue in the last quarter.

Google recorded falling revenues earlier in the year trying to catch up with cloud leaders. Google’s cloud computing jumped 62 percent to $3.4 billion “Our cloud business is on a terrific upswing.I definitely think we’re going to have a great year.” Said Sundar Pichai Google Chief Executive Officer

When Google founders created Alphabet in 2015, sergey emphasized on the importance to better Google services by making them more accountable and clean for the user. Larry Page the co-founder also emphasizes on the art of always staying uncomfortable in the business in order to stay relevant.

“We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”

What started a decade ago as an easy way for startups to run websites has turned into an increasingly popular way for companies of all sizes to access the software needed to run their operations. Many big technology companies are in a strong position to provide this because they already have huge data centers to support their own web services.

Microsoft too has risen in revenue records since the cloud business. The company has pledged to reach annualized revenue of $20billion by the year that ends in June 2018. Intel’s sale of server chips to cloud service providers went up by 30 per cent.

As cloud services continue to advance, Alphabet, Microsoft and Intel are well placed for business on their platforms. This will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age

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Melissa Daniels
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