Cloud customers increased 330%
Alphabet’s (GOOGL) Google is set to exit 2018 after hitting a sweet milestone in its cloud computing business in Latin America. Google’s cloud customer base grew 330% in Brazil in 2018, ZDNet reported. Cloud resellers are also excited about working with Google, with the company recording a five-fold increase in its cloud channel partners in Brazil, according to the report.
Launching a cloud region in Latin America helped Google unlock its cloud potential in the region, speeding up Google cloud services and making it easier for customers to pay for Google cloud services.
Catching up with the competition
But Google needs to keep winning to catch up with cloud leaders Amazon (AMZN) and Microsoft (MSFT). According to data from Synergy Research, Google captured about 6% of the global cloud market in the third quarter, compared to more than 34% for Amazon and 14% for Microsoft. IBM (IBM) is also ahead with more than 7% of the global market share. China’s Alibaba (BABA) captured about 5% of the global cloud market in the third quarter to round out the list of the top-five cloud companies in that period. According to a Bloomberg report, Google has considered joining forces with Tencent (TCEHY) in order to enter Mainland China’s cloud market.
Cloud segment revenue jumped 28%
Google doesn’t break down its cloud revenues, but revenue rose 28% year-over-year to $4.6 billion in the third quarter in the segment that houses its cloud business. That segment is reported as Google’s other revenues, and it also includes Google’s hardware business.