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Which Google+ Is Shutting Down?

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Updated

Google+ for business users will remain

Alphabet’s (GOOGL) Google recently disclosed that it had found a security flaw that may have exposed the personal data of as many as 500,000 users of its Google+ social network. Google+ was introduced in 2011 as a competitor to Facebook (FB).

In an attempt to tighten the security of its products, Google announced a wide range of changes after revealing the security glitch. These changes included shutting down the consumer version of Google+. The version of Google+ built for business users will stay, so businesses that purchase Google’s cloud productivity and collaboration apps offered under the G-Suite brand can use it for internal networking.

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Google’s cloud revenue increased 37.5%

G-Suite is a component of Google’s cloud computing business. The company’s cloud sales are reported under its Google Other revenues division, which also houses its hardware business. Google’s Other revenues increased 37.5% YoY (year-over-year) to $4.4 billion in the second quarter and helped drive Alphabet’s total revenue up 25.6% YoY to $32.7 billion in the quarter.

Snap (SNAP), Facebook, Baidu (BIDU), and Twitter (TWTR) grew their second-quarter revenues by 44.4%, 42%, 32%, and 23.8% YoY, respectively.

Source of search traffic

Google+ has been one of primary the search traffic sources for Google. Displaying advertisements against search results is one of Google’s main sources of advertising revenue, and it accounts for the vast majority of Alphabet’s total revenue. It’s unclear how shutting down the consumer version of Google+ will affect Google’s search business, but it’s likely the company hopes that the benefits of shutting the service down will outweigh any potential losses.

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