One thing I find strange about this is why Google is so keen to get this government business in the first place. They’re amazingly profitable already, one of the most successful companies of all time; is defense work really something that could become another major revenue stream? Given the obvious conflicts with their company culture (obvious to rank and file employees, anyway) it doesn’t seem like a very appealing…
Why bother with any new products when search and ads are extremely profitable?
I think it makes sense to look at this from the perspective of Google Cloud since I imagine that's where the contracts are. Google Cloud isn't a leader in this space. In cloud, having more customers is a competitive advantage both because of marketing and also because of technology/cost.
With more users, you can share costs more and have better forecasting since any given customer's specific usage will should not affect your total usage assuming customers are fairly similar in size (not true in reality..). Then hopefully you can run closer to capacity, lower prices, and then gain even more customers.
> Given the obvious conflicts with their company culture (obvious to rank and file employees, anyway) it doesn’t seem like a very appealing trade-off.
I don't agree with this to be honest. At least, I certainly wouldn't consider it "obvious". I'm a rank and file employee and I was surprised at the outrage. I still don't really see anything wrong with supporting the government or military but I can understand how this makes some people uncomfortable, especially if they are not US citizens.