Google’s cloud business suffered a loss of $5.6 billion last year, but rose sharply year on year

For the first time in its history, Google's parent company, alphabet, has released a record of sales of Google's cloud services, which shows that Google's cloud business lost an astonishing $5.6 billion last year. But compared with 2019, revenue has increased by nearly 50%. Among them, the fourth quarter alone grew by 46.

Obviously, Google cloud lags behind its competitors, especially Microsoft’s azure and Amazon dominated AWS. However, it is more likely that Google azure will become the core player in the business of cloud computing in the next few years.

Google's cloud business suffered a loss of $5.6 billion last year, but rose sharply year on year

In many ways, Google’s cloud business is going through the same painful period that its competitors have gone through – it took nearly a decade for AWS to make its first profit, and now its annual business volume exceeds $45 billion. But Google is facing a tough battle, which will take a lot of time and money to achieve.

Google's cloud business suffered a loss of $5.6 billion last year, but rose sharply year on year

Fortunately, alphabet does not rely on Google’s cloud services, thanks to Google’s dominant advertising business, which generated an amazing $52.9 billion in revenue in the last quarter alone, compared with nearly $170 billion for the whole year.