Google CEO Sundar Pichai hailed Google Cloud and newly acquired Mandiant as a “priority” for the technology conglomerate as Google Cloud’s annual run rate hits approximately $27.5 billion.
“Customers partner with Google Cloud because we offer a single platform that can analyze data across any cloud. Our leadership here is winning customers across industries, including the state of Hawaii and the Australian Securities Exchange,” said Pichai during Google’s earnings report on its third quarter 2022 financial results Tuesday. “I’m proud of the trust and enthusiasm our customers are placing in Google Cloud.”
Google Cloud generated a total of $6.87 billion in revenue during its third quarter, representing an increase of 38 percent year over year.
This far outpaced the growth of its parent company Google, which reported a 6 percent year-over-year rise in the third quarter sales, totalling just over $69 billion.
[Related: 5 Ways Google Cloud Differs From AWS, Microsoft: Channel Chief]ADVERTISEMENT
“The long-term trends that are driving cloud adoption continue to play an even stronger role during uncertain macroeconomic times,” Pichai said. “Google Cloud helps customers solve today’s business challenges, improve productivity, reduce costs and unlock new growth engines. … Google Cloud is a priority for the company and we continue to invest there.”
Mandiant’s ‘Industry Leading’ Security
In September, Google made its biggest cybersecurity acquisition in its history in buying Mandiant for $5.4 billion.
Mandiant is now part of Google Cloud.
“With Mandiant, we add industry-leading threat intelligence and incident response capabilities to help customers stay protected at every stage of the security lifecycle,” said Pichai regarding Google’s third quarter earnings, which ended Sept. 30, 2022.
Google’s CEO touted the company’s new Chronicle Security Operations suite recently launched at Google Cloud Next 2022.
Pichai said he is “proud to welcome more than 2,600 colleagues” from Mandiant to Google.
In a recent interview with CRN, Google Cloud’s security leader, Jeff Reed, said integration was always underway.
“Mandiant is unprecedented in terms of new capabilities that Mandiant has brought in,” said Reed, vice president of product for Google Cloud Security. “Nothing else is even like it in terms of the amount of security capabilities that we’ve brought into Google Cloud.”
Google Cloud Profit Loss Of $700 Million
Google Cloud, as a company, has yet to generate a profit.
This is, in part, due to ongoing large investments in data center expansion on a global basis to accommodate the growing demand for its cloud services.
For its third quarter, Google Cloud reported an operating loss of approximately $700 million.
However, the quarterly loss of $700 million is less than the operating loss the company witnessed in prior quarters this year.
In its second quarter 2022, Google Cloud reported an operating loss of $858 million.
In Google Cloud’s first quarter 2022, the company had an operating loss of $931 million.
Google Cloud includes Google’s infrastructure and platform services, collaboration tools, and other cloud services. The cloud business generates revenues from fees received for Google Cloud Platform services, Google Workspace collaboration tools, and other services.
During Google’s earnings report, Pichai touted Google Cloud’s capabilities to help solve difficult business challenges like supply chain and logistics, while also creating new growth opportunities.
“As companies globally are looking to drive efficiencies, Google Cloud’s open infrastructure creates a valuable pathway to reduce IT costs and modernize,” said Google’s CEO.LEARN MORE: Cloud Platforms | Cloud Software
Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at [email protected].
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