8 Oct

Google’s Cloud Revenue Could Hit $38 Billion by 2025

WRITTEN BY Ruchi Gupta

Google’s (GOOG) (GOOGL) cloud computing business is surging under the stewardship of Thomas Kurian. In July, Google revealed that its cloud business makes an average of $8.0 billion in annual revenue. This figure indicates rapid growth in the business. In February, Google said its cloud business was making an average of $4.0 billion in annual revenue.

Deutsche Bank analysts agree that Google’s cloud business is growing impressively. Analysts expect the company’s annual cloud revenue to hit $38 billion by 2025.

Google Cloud expands its sales team and sharpens its enterprise sales focus

Kurian joined Google as head of its cloud business last fall from Oracle, where he’d been for years. As the head of Google Cloud, Kurian has focused on winning over large clients. As we’ve previously discussed, Kurian has brought in former SAP SE (SAP) executives who are highly experienced in the field of selling to enterprise customers. SAP is a leading German business software company.

In addition to tapping experienced enterprise sales executives, Kurian has also set out to expand Google Cloud’s sales team. The company aims to triple its cloud sales team in the next few years. Right now, the sales team is significantly smaller than those of its competitors Amazon (AMZN) and Microsoft (MSFT), as we’ve discussed.

Google aims to overtake Microsoft

Currently, Amazon dominates the global cloud computing market. It finished the second quarter with a 33% share of the global cloud market, according to Synergy Research estimates. Microsoft came in a distant second with a 16% share. Google came in third with just an 8.0% share. By expanding its cloud sales team and going for large clients, Google thinks it could beat Microsoft in terms of cloud market share within five years.

European cloud market is a big focus

In addition to enlarging its cloud sales team and sharpening its enterprise sales strategy, Google also continues to invest in expanding its cloud infrastructure and, therefore, its capacity. The global cloud market continues to expand as more organizations embrace cloud computing. The revenue opportunity in the global cloud market will surpass $331 billion by 2022, according to Gartner predictions. The global cloud market was worth $182.4 billion in 2018.

In pursuit of cloud dollars, Europe has become a particularly major area of focus for Google. According to the company, its cloud revenue is growing faster in Europe than in any other part of the world. Google will spend $3.3 billion on expanding its cloud capacity across Europe in the next two years.

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