Google Apps, Enterprise Cloud Revenues: $1B In 2013?
Google (NASDAQ: GOOG) Senior VP and Chief Business Officer Nikesh Arora says the company’s “enterprise business continues to grow at an impressive pace.” How impressive? The search giant’s cloud business will triple and reach nearly $1 billion in 2013, Technology Business Research Inc. (TBR) predicted.
During an earnings call yesterday, Google described Q4 2012 results. Consoldicated revenues were $14.42 billion, up 36 percent from Q4 2011. Net income reached $2.89 billion, up from $2.71 billion in Q4 2011.
The big question for Talkin’ Cloud’s readers and Google Apps for Business channel partners: How is Google’s cloud business performing? Neither Arora nor Google have shared specific revenue figures for Google Apps and emerging platforms like Google Compute Engine or Google App Engine. But TBR offered these data points to the media:
- TBR estimates that Google’s cloud business, consisting of Google Apps, Google App Engine and Google Compute Engine (no ad-related revenue) generated $97 million in the Q4 2012 and $314 million in the year.
- TBR believes Google’s cloud business grew 83% year-over-year.
- TBR believes that Google’s cloud business will triple annually in 2013 to just under $1 billion in 2013.
During the Google earnings call, Arora was a bit more coy — offering only this statement about the enterprise business:
“Our enterprise business continues to grow at an impressive pace. It’s been gaining traction across some of the largest companies in the world. New customers this quarter include Nintendo, the Canadian Broadcasting Company, Shaw industries, Costco, Randstad and Hyundai to name a few. Also signing in May is the U.S. Department of Interior, moved more than 70,000 employees to the cloud during Q4 making it the largest federal agency to date using Google Apps.”
Those wins come at a critical time for Google. The company now has roughly 6,000 Google Apps for Business channel partners, but Microsoft’s rival Office 365 cloud platform seems to be turning the corner and gaining momentum with partners and customers.
“In May — US Dept of
“In May — US Dept of Interior moved 70,000 employees — largest agency using Google Apps.”
But in November, US Dept of Veterans Affairs moved 700,000 to Office 365.
http://www.datacenterknowledge.com/archives/2012/11/13/u-s-department-of-veteran-affairs-uses-cloud/
You have to be careful when
You have to be careful when quoting Google’s number. Google has a history of distorting data to enhance their results (e.g., number of active Google+ users). Google also likes to boast about about new clients (Nintendo, Ranstad) — but these are relatively small companies compared to Office 365 clients (Coca Cola, JC Penney, Toyota)
There is also the situation with the city of Los Angeles which wants a refund from Google for non-performance of contractual obligation?
jctmpt: Thanks for your
jctmpt: Thanks for your views. I will definitely keep them in mind. I think most technology vendors (Microsoft and Google) put their wins in the most positive light possible. Overall Microsoft has said the vast majority of Office 365 deployments are to small businesses. I suspect Google would say the same thing about Google Apps…
-jp
Here are the latest Office
Here are the latest Office 365 NEW clients:
1 – ENTIRE State of Texas – over 100,000 users. This means the 2 biggest states – Texas and California are Office 365 users
http://gcn.com/articles/2013/02/21/texas-office-365-police-health-care-data.aspx
2- Internation RED CROSS association – with up to 15M users.
http://www.computerworld.com/s/article/9237098/Red_Cross_offers_Office_365_to_its_units_worldwide_to_improve_communications
3 – JC Penney with 200,000 users
http://www.neowin.net/news/ron-johnsons-jcpenny-is-moving-to-office-365
You must remember that Google VP Amit Singh declared that Google Apps WILL grab 90% of Microsoft enterprise business.
http://www.forbes.com/sites/kellyclay/2012/12/26/google-wants-to-grab-90-of-office-users-away-from-microsoft/
Microsoft response is to quietly work harder and come up with better enterprise products to go after Google Apps.
JCTMPT: Thanks for the list.
JCTMPT: Thanks for the list. I definitely respect the progress Microsoft has made with Office 365. I just wish Microsoft announced more “partner” wins when it comes to Office 365.
-jp