[HN Gopher] Google Cloud lost $5.61B on $13.06B revenue last year
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       Google Cloud lost $5.61B on $13.06B revenue last year
        
       Author : etimberg
       Score  : 23 points
       Date   : 2021-02-02 21:39 UTC (1 hours ago)
        
 (HTM) web link (www.cnbc.com)
 (TXT) w3m dump (www.cnbc.com)
        
       | silexia wrote:
       | Google has a reputation issue here: no one wants to build serious
       | products on it's platforms since it killed so many products in
       | the past.
       | 
       | Legacy support sucks, but if you don't support your old products
       | people won't trust your new ones.
        
       | TheCoelacanth wrote:
       | That's crazy! How are they losing so much money on such a high-
       | margin business?
       | 
       | AWS and Azure are basically printing money.
        
         | hehehaha wrote:
         | My guess is they're giving away a lot for free. Firebase free
         | tier is almost too generous.
        
         | influx wrote:
         | From what I hear they are giving out sweetheart deals to large
         | customers that aren't making money, but hey they can claim to
         | run "X" company's cloud instances.
        
         | raiyu wrote:
         | I'm sure they are still heavily investing in CapEx given their
         | growth.
         | 
         | You have to remember that AWS had a more linear path so capex
         | investment was spread out over a longer time line. Meanwhile
         | Google had to rebuild all of AWS infra and capacity basically
         | over night.
         | 
         | That coupled with high revenue growth leads to a large loss in
         | the build out years. As revenue increase YoY slows down that
         | loss will begin to narrow.
        
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       (page generated 2021-02-02 23:01 UTC)