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Google Cloud Worth $225B, Deutsche Bank Says

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

#171

Post by sieabahlpark »

verdverm wrote: post #169

Google is dumping money into their enterprise programs. They hired some experienced people to run it. Their offerings are soooo much better quality than AWS. Try getting a GPU vm with a local SSD on AWS, does not exist... In GCP I can set custom values for CPU, MEM, GPU, SSD. Try to ssh to a machine, and then one without a public network connect. Google is the only provider with a good portal to their partner program…

They're good until you get automatically banned for some reason and there is zero people you can contact to fix it.

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

#172

Post by sieabahlpark »

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…

Compared to their ad business the cloud is lower revenue. Selling people is the real money maker.

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

#173

Post by tpmx »

sieabahlpark wrote: post #171
verdverm wrote: post #169

Google is dumping money into their enterprise programs. They hired some experienced people to run it. Their offerings are soooo much better quality than AWS. Try getting a GPU vm with a local SSD on AWS, does not exist... In GCP I can set custom values for CPU, MEM, GPU, SSD. Try to ssh to a machine, and then one without a public network connect. Google is the only provider with a good portal to their partner program…

They're good until you get automatically banned for some reason and there is zero people you can contact to fix it.

Maybe don't run your critical service on a consumer google account that you're also doing shady stuff with?

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

#174

Post by ddebernardy »

ocdtrekkie wrote: post #114
nexuist wrote: post #19

Not one mention of AWS. http://paulgraham.com/submarine.html

On an aside, Paul Graham clearly saw influencer marketing coming in his final paragraph.

The essay is from 2005. Internet marketers were seeing that trend in the run up to the dot com bubble. And porn sites were seeing it even earlier. (Internet marketers were learning from the latter at the time.)

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

#175

Post by hcnews »

briffle wrote: post #126
exacube wrote: post #76

Earlier quoted context omitted.

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).…

Market share is measured in some very, very funny ways. Like Office 365 being part of their cloud division, including when people download and install office on their computer. If Google was to switch things around, and have Ad-words, Gmail, maps, etc, all pay a small, internal fee to google cloud to host their servers own internal servers, I think the market-share conversation would be very, very different.

Most of internal Google services don't run on Google cloud. Was true as of a couple of years ago and I haven't heard differently from my Google friends recently.

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

#177

Post by throw_away »

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…

If we're using stock price as a metric to judge strategy, GOOG's gains have been stomped by AMZN since 2006 by about 8x: https://yhoo.it/30KNk3A

By that chart, GOOG's only about 5x-ed since 2006.

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

#178

Post by my_usernam3 »

q3k wrote: post #152
VikingCoder wrote: post #77

Earlier quoted context omitted.

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.

I'm really glad they took the opportunity to change the APIs and abstractions around. Some of the ones exposed by AWS are absolutely insane. Not to mention some of the paradigms: regionalized dashboards/endpoints, the mess that is EC2Classic/VPC, lack of projects for compartmentalization/namespacing ... a lot of those APIs also leak internal implementation details of their products, and trying to match them would be…

> AWS just seems like an underdesigned mess of loosely coupled components implemented by siloed teams

That was my experience as well. It felt like they never included any UX person throughout any of the decisions. Their naming convention alone always seemed confusing to me, although it does seem to be improving.

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

#180

Post by dijit »

amerine wrote: post #87
superfrank wrote: post #61

Earlier quoted context omitted.

Obviously I have zero information about how they came to that conclusion, but it sounds to me like they looked too far into the future. With basically every major tech company (Amazon, Google, Microsoft, IBM) now having some cloud offering and so many companies switching their on-site infrastructure for the cloud, it seems like it's only a matter of time until compute time becomes a commodity. Once that happens prici…

Why does this argument get made so much? Why is it assumed that the market will behave this way?

Because we have 100 years of free market capitalist based economic history that it would be unwise to ignore?
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