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Google Cloud Worth $225B, Deutsche Bank Says

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Re: Google Cloud Worth $225B, Deutsche Bank Says

#111

Post by rolltiide »

lacker wrote: post #43

I was working at Google when AWS launched in 2006. The internal message was, we don't want to build a competitor. We have the technology to compete in this area, but it is fundamentally a low-margin business, whereas reinvesting in our core business is high-margin, so we should keep our infrastructure to ourselves. I wouldn't say the Google strategy was wrong per se - their stock has about 10x'd since then. But it's…

That's because that was 2006. They were wrong. There is nothing wrong with saying that. Corporations change strategies every 90 days, there is no reason for the infallible cult leader admiration.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#112

Post by jkaptur »

michalu wrote: post #47

This only means that Deutsche Bank is long on Google. 99% of these analyses are extremely biased and purposeful. I'm not trying to peddle "banks are evil" it's normal, it's how this business works. I worked in a leading asset management firm and never met a truly rich analyst. Usually bureaucratic employees nobody at the trading desk takes seriously.

You can search for "Chinese Wall" in the context of banks for more context on this.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#113

Post by marksomnian »

rumanator wrote: post #93
outside1234 wrote: post #56

Earlier quoted context omitted.

More. A lot more. Azure is growing 20 points faster than GCP and from a much higher base too (and I will point out that it is in Microsoft's DNA to run this sort of business, unlike Google's).

Since when is the internet in Microsoft's DNA? And isn't Azure's main feature the fact that they provide a service invented and developed by Google (kubernetes') and a first-class citizen in GCP?

Microsoft's DNA is Enterprise with a capital E. Google has always had the startup pretense (or rather, the pretense of still being a startup, even when they're not by any stretch of the imagination), meanwhile in almost every Fortune 500 company you'll see offices full of Windows desktops running Office. The sales networks are there, and they can reuse them for Office 365 and Azure too.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#115

Post by croh »

exacube wrote: post #76
lacker wrote: post #43

I was working at Google when AWS launched in 2006. The internal message was, we don't want to build a competitor. We have the technology to compete in this area, but it is fundamentally a low-margin business, whereas reinvesting in our core business is high-margin, so we should keep our infrastructure to ourselves. I wouldn't say the Google strategy was wrong per se - their stock has about 10x'd since then. But it's…

I feel they entered the business because they AWS showed the industry that it actually has pretty good margins. However, I think the sentiment is probably true that selling VPS is low-margin over the long-term, but i think the margins come from the other bits: global economies of scale, good infrastructure management & practices, and providing their proven internal technologies (ML/AI, managed distributed services).…

> I feel they entered the business because they AWS showed the industry that it actually has pretty good margins.

And they stayed because of Azure. Azure was making huge profit when google decided to increase number of data centers. This wouldn't be coincidence, IMO.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#116

Post by rumanator »

tootie wrote: post #105
rumanator wrote: post #89

Earlier quoted context omitted.

> I haven't seen any shops that have bet the farm on GCP the way they do on AWS or Azure. Your examples sound a bit biased. Based on your argument, using GCP as part of a multi-cloud solution for risk mitigation could also imply that those clients don't trust AWS or Assure to provide a reliable service, thus they are compelled to use GCP for reliability. Using Kubernetes workloads means that GCP is trusted above any…

You work for Google or something? I've been in an out of a ton of IT departments and I'm just reporting what I've seen. I've honestly never done a real evaluation of GCP as a whole. Only Firebase. From what I've seen first-hand, AWS is the default choice. Azure has substantial market share, particularly among orgs that are already bought into the Microsoft stack. GCP just doesn't have a strong story to tell. I should…

> You work for Google or something? I've been in an out of a ton of IT departments and I'm just reporting what I've seen.

I don't work for google, nor does your attempt to switch to personal attacks change any of the points I made. In fact not only do your assertions sound heavily biased, you now admit that you never done a real evaluation of a service you're criticising. Frankly I don't care if X or Y has more market share, but people making baseless assertions regarding stuff they have no experience or knowledge in simply add noise to a discussion that's expected to be insightful.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#117

Post by gowld »

lacker wrote: post #43

I was working at Google when AWS launched in 2006. The internal message was, we don't want to build a competitor. We have the technology to compete in this area, but it is fundamentally a low-margin business, whereas reinvesting in our core business is high-margin, so we should keep our infrastructure to ourselves. I wouldn't say the Google strategy was wrong per se - their stock has about 10x'd since then. But it's…

Google AppEngine launched in 2008.

Google Cloud Storage launched in 2010

Google has been chasing Amazon since AWS started, and has been accelerating investment.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#118

Post by jgalt212 »

VikingCoder wrote: post #77
lacker wrote: post #43

I was working at Google when AWS launched in 2006. The internal message was, we don't want to build a competitor. We have the technology to compete in this area, but it is fundamentally a low-margin business, whereas reinvesting in our core business is high-margin, so we should keep our infrastructure to ourselves. I wouldn't say the Google strategy was wrong per se - their stock has about 10x'd since then. But it's…

I would say the Google strategy was wrong. For every AWS API with significant adoption, Google should have implemented it. Make transitioning from AWS to GCE as simple as possible.

yes, I agree.

https://en.wikipedia.org/wiki/Plug_compatible

Re: Google Cloud Worth $225B, Deutsche Bank Says

#119

Post by sorum »

dnautics wrote: post #91
ehsankia wrote: post #65

Earlier quoted context omitted.

Anyone can get Google support with Google One [0] for as low as 2$ a month (along side 100GB of storage). The issue is people expect free products they haven't paid a penny for to have live customer support, which doesn't make much sense at the billion user scale. [0] https://one.google.com/

Have you ever interacted with Google support as a paying customer? It's miserable in my experience.

Usually, it's a case of "You get what you pay for".

For GCP, you can get 4-hour response time SLA for $100 per user. If you want 1-hour response SLA it's $250. Then there's Enterprise Support if you need 15-minute response SLA, TAM assigned etc which costs more.

Caveat: I work at Google Cloud.

Re: Google Cloud Worth $225B, Deutsche Bank Says

#120

Post by gowld »

IshKebab wrote: post #63
lacker wrote: post #43

I was working at Google when AWS launched in 2006. The internal message was, we don't want to build a competitor. We have the technology to compete in this area, but it is fundamentally a low-margin business, whereas reinvesting in our core business is high-margin, so we should keep our infrastructure to ourselves. I wouldn't say the Google strategy was wrong per se - their stock has about 10x'd since then. But it's…

I'd say it was wrong. Amazon and Microsoft now make huge amounts of money from their clouds. It can't be that low margin! But I feel like their real mistake was trying to do things right, rather than compatibly. I think Google Cloud Engine is undeniably a better system than ad-hoc Linux VMs. But nobody really wants to rewrite all their code to work with it.

Google Compute Engine offers ad-hoc VMs. Google (and Amazon) have many offerings.
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