Google Cloud remains loss-making arm for Google

Google Cloud

Google made more cloud revenue in 2021. Still, Google Cloud remains loss-making. The tech giant does manage to straighten out the expense with huge revenue figures it gets from other branches.

Alphabet, the parent company behind Google, releases figures on Google’s performance during 2021. Overall, the company managed to generate revenue of $258 billion. From there, the tech giant was also able to knock out a profit of $76 billion. An increase from the profit amount from 2020, which was $40 billion then.

Losing cloud

The tech giant does not owe its huge profits to cloud service sales. Amazon and Microsoft are still pulling the cloud cart. Still, Google Cloud is getting a bigger and bigger cake of cloud offerings. That’s reflected in rising revenue, which was 44 percent higher last year than in 2020.

Profit was just not to be had from Google Cloud. The figures show that Google actually has to make up $3.1 billion. A year earlier, the company suffered a $5.6 billion loss from Google Cloud. Google tried to save some more on Google Cloud expenses in 2021 by keeping cloud servers and routers operational for an extra year. That reduced the loss, but it was still there.

Acquiring new customers

Google is trying to get even more customers to sign up for its Google Cloud offering. Before that, the search giant only recently announced that certain start-ups are eligible to use the Google Cloud Platform for free for a year. Doubting about connecting to the Google Cloud Platform yourself? Then maybe our comprehensive article highlighting the good and bad sides can help.

Currently, ads are proving to be a huge revenue source for Google. In that area, the search giant knows how to snare advertisers well.