In a much anticipated announcement, Google is finally moving parts of its most popular billion dollar platform YouTube to its cloud services. Some of its rivals including Amazon and Microsoft have used their own cloud services for their operations, years and months ago. However, YouTube from Google had continued to remain separate and was run on its own infrastructure but this recent move to the cloud is a boost for its cloud service division.
Way back in 2019 technology industry research company had reported that Amazon held about 45 percent of the cloud infrastructure market, while Microsoft held about 18 percent. Google had only 5 per of the market. Gartner has not released any figures, since.
This move of YouTube to it’s could services will not only make the job of its salesforce easier to pitch to other customers but could also improve its revenues.
In the first quarter almost 58 percent of Alphabet’s (Google’s parent company) revenue came from Google’s search engine and other categories such as advertising on its search engine, Gmail, Google Maps and more. Google’s cloud service which consists of the public cloud and Google Workspace contributed 7 percent of its revenues. However, the cloud division showed fast growth.
Therefore the shifting of part of the two billion YouTube platforms to the cloud is another factor that will propel growth and more as many big, medium and small companies are also moving to cloud operations instead of traditional hosting services.
Alphabet’s cloud hosting services losses has been decreasing the profits of its parent company Alphabet by billions but the additional revenues from YouTube could mitigate the losses. It is also a huge marketing ploy for the cloud unit to find new customers. Earlier, it was difficult when its own parent company had not utilized its services.
Amazon Web Services had reported a growth of 32 percent in the first quarter of 2021. Microsoft’s Azure cloud services have also seen growth after the LinkedIn platform was added to its cloud operations. Whether it is Amazon or Microsoft or Google, the cloud is the new host for all big, medium and small platforms and companies and it will probably become the biggest one as companies keep migrating to the cloud.