Google (GOOG) provided very little insight into the overall sales trends for its Enterprise business in its earnings report for the first three months of 2014, according to a report by International Data Group (IDG) News Service. In addition, IDG News Service noted that Google didn't say much about the sales of some of its individual products, including the Google Apps cloud email and collaboration suite, its Compute Engine Infrastructure-as-a-Service (IaaS) tool and its App Engine Platform-as-a-Service (PaaS) offering.
In its Q1 2014 earnings report, Google focused primarily on its online advertising business, IDG News Service said. Google reported that its generally accepted accounting principles (GAAP) operating income in the first quarter of 2014 was $4.12 billion, or 27 percent of its revenue, thanks in part to several factors.
"We completed another great quarter. Google's revenue was $15.4 billion, up 19 percent year on year," Google CEO Larry Page said in a prepared statement. "We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses."
However, Forrester Research analyst Ted Schadler noted that chief information officers (CIOs) want more details about Google's Enterprise unit revenues because this data could help them make business decisions about the cloud.
"I think CIOs would like to see Google report [Enterprise unit] revenues in more detail so they have a better sense of Google's commitment to their market," Schadler told IDG News Service.
IDG News Service reports that millions of businesses, commercial developers, government agencies and schools depend on Google's business cloud services and "have made a strategic bet that Google will stand behind them for the long run." Alan Lepofsky, a Constellation Research analyst, pointed out that Google faces steep competition from Microsoft (NASDAQ: MSFT) and other large cloud vendors as well, which could make it difficult for Google to dominate the enterprise collaboration market.
"In a market where transparency is one of the primary tenets, customers want to know the vendor they are dealing with is financially stable. When a publicly traded vendor does not provide details of their enterprise software business, it does not tell a convincing story," Lepofsky told IDG News Service.
In Google's earnings report for fiscal year 2013, released in January, Page said that Google finished 2013 on a positive note, but he did not provide additional details about his company's Enterprise unit earnings.
"We made great progress across a wide range of product improvements and business goals," Page said in a prepared statement. "I'm also very excited about improving people's lives even more with continued hard work on our user experiences."