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Alphabet Third Quarter 2021 Results [pdf]

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Re: Alphabet Third Quarter 2021 Results [pdf]

#41
post #2

> In January 2021, we completed an assessment of the useful lives of our servers and network equipment and adjusted the estimated useful life of our servers from three years to four years Does anyone know what the observation was here that made this possible? Have Google's internal workloads not grown in size as quickly as they thought, or is this a "Moore's law is slowing down" thing?

No, computers typically have a service life of 5 years, but depreciating them faster gives you more loss to to write down against your income.

What you are seeing though is the trick they used to make 'net income' pop. Let's say they had a million servers and a server costs $5K each. When depreciated at 3 years that is $1.6 billion dollars a year of depreciation. But you stretch that out to 4 years and now its only $1.25 billion dollars in appreciation. Since depreciation is subtracted from revenue you just "bumped" up your revenue by $350M and you didn't have to do anything at all (except change how you treated your assets).

That they had to resort to this level of shenanigan to get their revenue numbers up is interesting to me.

Re: Alphabet Third Quarter 2021 Results [pdf]

#42

I like to think I'm doing my part as a sharehholder. Every so often I'll google something like Criminal Defense Attorney , send money , or file taxes and click on the highest ads.

That seems like fraud, especially if you were to do it at scale.

Re: Alphabet Third Quarter 2021 Results [pdf]

#43
post #2

> In January 2021, we completed an assessment of the useful lives of our servers and network equipment and adjusted the estimated useful life of our servers from three years to four years Does anyone know what the observation was here that made this possible? Have Google's internal workloads not grown in size as quickly as they thought, or is this a "Moore's law is slowing down" thing?

AFAIK it comes down to some degree to a tradeoff between the projected density and power efficiency gains of newer gear vs the cost savings of keeping older gear around and in the racks. Some datacenters simply can't support higher density due to power constraints and if the newer gear isn't offsetting the capital costs by pulling in more revenue then you might as well keep the old gear around longer.

I don't know why people always mention density. Google isn't constrained on floor space. If they need another 100 acres of Iowa for their servers to stand on, they'll just buy that for a comparative $0 cost.

Density is an issue for people who are still renting from Equinix.

Re: Alphabet Third Quarter 2021 Results [pdf]

#44

Earlier quoted context omitted.

The dirty secret of tech is that markets matter more than effort or smarts. If you have product/market fit and a decent technological lead in a market that is large and growing, you will do better than a company that does not have PMF or a good market, regardless of how hard you work. (This explains so much about Oracle.) Social media mentions are probably a better sign of how well you'll do than full parking lots. I…

markets and moats matter. Anyone can get revenue selling tomatoes, the problem with tomato farming is that there is no moat, you will not be able to sell at a price much higher than the next farmer down the street. If there were 100 good search engines the price for advertising would be 90% lower

> If there were 100 good search engines the price for advertising would be 90% lower

And the number of ads and hidden ads would be like Cable.

Re: Alphabet Third Quarter 2021 Results [pdf]

#45
post #43

Earlier quoted context omitted.

AFAIK it comes down to some degree to a tradeoff between the projected density and power efficiency gains of newer gear vs the cost savings of keeping older gear around and in the racks. Some datacenters simply can't support higher density due to power constraints and if the newer gear isn't offsetting the capital costs by pulling in more revenue then you might as well keep the old gear around longer.

I don't know why people always mention density. Google isn't constrained on floor space. If they need another 100 acres of Iowa for their servers to stand on, they'll just buy that for a comparative $0 cost. Density is an issue for people who are still renting from Equinix.

the substation has a limit, so do all of the power distribution systems.

Re: Alphabet Third Quarter 2021 Results [pdf]

#46

Alphabet + Facebook revenue now represents 1/2% of world GDP and still growing rapidly. Edit: possibly not quite but almost certainly 1/2% excluding China.

Considering the world would be more than 0.5% worse without Google, I guess they're still undervalued?

Re: Alphabet Third Quarter 2021 Results [pdf]

#48
Once more, I don't understand how advertising revenue keeps growing. Once people install ad blockers, they don't typically remove them. And ad-blockers keep growing.

So who is actually seeing these ads? How can those numbers be going up?

I understand, intellectually, that not everyone thinks like me. But I don't fundamentally understand why people allow ads on their devices when they can prevent it. Then again, I don't understand a lot of behaviors people exhibit.

Re: Alphabet Third Quarter 2021 Results [pdf]

#49
post #42

I like to think I'm doing my part as a sharehholder. Every so often I'll google something like Criminal Defense Attorney , send money , or file taxes and click on the highest ads.

That seems like fraud, especially if you were to do it at scale.

A lot of things we do are a little fraudulent, no? The measure is probably impact.
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