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Cloud Businesses Google The Almighty Buck Technology

Google Cloud Worth $225 Billion, Deutsche Bank Says (bloomberg.com) 65

Posted by BeauHD from the all-by-its-lonesome dept.
An anonymous reader quotes a report from Bloomberg: Alphabet's cloud business alone is now worth $225 billion, Deutsche Bank analysts led by Lloyd Walmsley wrote in a note. The unit could report compound annual growth of 55% between 2018 and 2022, and reach annual sales of about $38 billion by 2025, the analysts wrote. The value ascribed by Deutsche Bank to Google Cloud is nearly twice the market value of IBM, which reported cloud revenue of $19.2 billion in 2018, at the close of trading on Wednesday, Bloomberg data show.
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Google Cloud Worth $225 Billion, Deutsche Bank Says More

Google Cloud Worth $225 Billion, Deutsche Bank Says

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  • Deutsche Bank about to go bankrupt ... (Score:3)

    by BAReFO0t ( 6240524 ) on Friday October 04, 2019 @03:24PM (#59271062)

    ... says me.
    All I see from them, is extreme cutbacks. Like they can barely make ends meet, and are scraping together their last cents. For one more bottle of booze. ;)

    Deservedly so, after being a major co-conspirator in one of the biggest financial manipulation scandal in history. (Libor scandal)

    Not yelling "socialize our losses", err, "bailout" again yet though ...

    • Comment removed based on user account deletion

      • Oh don't worry, they have some investments in a major real estate tycoon in the US, who I'm sure will keep them afloat...

        Exactly the reason they will go bankrupt.

        A one trick pony.

        Lets's see if it's as funny the 5th time.

  • How long can a cancer grow at 55%/year? (Score:5, Insightful)

    by shanen ( 462549 ) on Friday October 04, 2019 @03:29PM (#59271072) Homepage Journal

    Compound growth is a really frightening thing. If that estimate is accurate and if the google is able to sustain that growth rate (and assuming that no other corporate cancer grows faster), then it won't take long for the google to swallow everything.

    So what's that got to do with the price of tea in China?

    Just the old bringing-it-back-to-earth joke. I'm not seeing the natural monopoly here. What I'm seeing is a broken economic system where insane growth is defined as "good". Convince me this is a sustainable model. Go ahead. I double dare 'ya.

    Solution approach time. If you think freedom is good, then you should want (1) More choices, not one, and (2) Prefer smaller corporations (so, among other advantages, we can have smaller governments). My favorite approach would be to tax excessive bigness using a progressive tax on profits based on market share. Not a penalty for success, but rather an inducement to reproduce the good ideas in more companies while increasing retained earnings and producing higher shareholder value.

    But I've said that before. I'm still waiting for (1) A better solution approach, (2) Constructive criticism, or (3) Evidence of comprehension. Ergo, I bid you ADSAuPR, atAJG.

  • Wonder what Amazon's Cloud is worth? No mention of it because it will probably make this story not sound exciting.

  • Is this a pump and dump article? (Score:3)

    by bobstreo ( 1320787 ) on Friday October 04, 2019 @03:55PM (#59271164)

    Because I didn't see Amazon mentioned anywhere in the comparison of Alphabet to the tier 3 cloud providers

    • Re: (Score:2)

      by Luthair ( 847766 )
      I forget where exactly I heard this, but a source I saw claimed that these public analyst papers are really advertising pitches to the company - hey look what we can do for you.

  • The article is confusing (Score:3)

    by magzteel ( 5013587 ) on Friday October 04, 2019 @03:56PM (#59271172)

    They don't mention it, but current Google cloud annual revenue is about 8 billion.

    “While Google Cloud has been lagging behind in the market and burning money historically, with increased confidence in the go-to-market and commercial traction under Mr. Kurian, we think it can grow market share,” they wrote."

    "The unit could report compound annual growth of 55% between 2018 and 2022, and reach annual sales of about $38 billion by 2025, the analysts wrote."

    "The value ascribed by Deutsche Bank to Google Cloud is nearly twice the market value of IBM, which reported cloud revenue of $19.2 billion in 2018, at the close of trading on Wednesday, Bloomberg data show."

    So, the analyst is saying that if in 4 years Google cloud revenue is double what IBM's cloud revenue is today, the cloud business will be worth more than double the value of IBM today. It's kind of a silly comparison.

    • So Google's revenue is about 25% of Amazon's cloud services? That sounds about right. In about 5 years, with massive projected growth, Google could... catch up to where AWS is today, at which time AWS, which is also growing at +40% would still be... much higher.

      It is pretty suspicious that the article compares them to the "market value of selected peers" (Emphasis added), with no mention of AWS at all.

      This is like writing an article about how Bing is really socking it to Yahoo in 2019, but not mentioning Google.

  • they could loan money to a Mr Trump and that he would pay it back.
  • Rows and floes of angel hair

    And ice cream castles in the air

    And feather canyons everywhere

    I've looked at clouds that way

    But now they only block the sun

    They rain and snow on everyone

    So many things I would have done

    But clouds got in my way

    I've looked at clouds from both sides now

    From up and down, and still somehow

    It's cloud illusions I recall

    I really don't know clouds at all

    • Rows and floes of angel hair

      And ice cream castles in the air

      And feather canyons everywhere

      I've looked at clouds that way

      But now they only block the sun

      They rain and snow on everyone

      So many things I would have done

      But clouds got in my way

      I've looked at clouds from both sides now

      From up and down, and still somehow

      It's cloud illusions I recall

      I really don't know clouds at all

      -Joni Mitchell - Both Sides Now

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