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How much is Google Cloud worth?

via:博客园     time:2019/10/7 17:03:16     readed:124

In today's cloud computing world, the strong and the strong, 3A continues to expand the site, small vendors are struggling to survive, and a group of ambitious people in the middle are rising.

As a global technology giant, Google actually has many existing and potential markets for cloud computing, but few people know the value of this business.

Most people only see the strength of Google Cloud competitors, such as Amazon AWS and Microsoft Azure

As a result, in the global cloud market, many people have dropped Google Cloud to third place.

Recently, Deutsche Bank analyst Lloyd.

They found that most cloud markets misunderstood Google's cloud operations.

Content of the report: Google Cloud is worth $25 billion, two of the two sub-segments are

From 2018 to 2022, Google Cloud's revenue will grow at an annual rate of 55%, reaching $2022's revenue of $17 billion, which will contribute about 7% of Google's pre-tax revenue.

By 2025, Google Cloud revenue will reach around $3.8 billion.

By calculating the market share of Internet giants and doing reverse calculations, analysts have increased the revenue valuation of Google Cloud Platform (GCP) by 15 times and G Suite by 5 times, and found that:

Google Cloud's total business value is about $225 billion.

Google

Source: Deutsche Bank

It will also lay the foundation for Google Cloud to overtake other giants.

This means that Google Cloud's valuation is expected to exceed the market capitalization of IBM, SAP and Salesforce, or even Oracle.

At present, the, Google Cloud business is divided into two blocks:

  • G Suite, including Gmail and Google Docs;
  • GCP (Google Cloud Platform), part of the competition with AWS and Azure.

According to the report, by 2022, the annual compound growth rate of GCP will reach 64%, while the annual compound growth rate of G Suite will be only 13% (net net note: the purpose of compound annual growth rate is to describe an investment return rate).

In the report, the two analysts further concluded that the current market valuation of the Google Cloud business is zero.

This is where the opportunity lies.

It's worth noting that although Deutsche Bank has given Google Cloud more than a quarter of Alphabet's current market value, cloud computing will drag down Google's profits this year.

Google Cloud earnings gap AWS and Azure 3-7 times, strategy: continue to burn money

Does Google Cloud have the ability to close the gap with the closest technology competitor?

Deutsche Bank expects Google Cloud's revenue to grow 76% to $4.7 billion this year and 68%, 50% and 40% in the next three years, respectively.

Google

Google Cloud is the third participant in public cloud infrastructure services (IaaS) and platform business (PaaS), while AWS and Azure's IaaS/PaaS revenue will reach $34 billion and $11.9 billion, respectively, in 2019.

The gap between Google Cloud and the two is still clear.

Net (public number: Net) previously reported, pre - post executivesThomas (Llewelly Hilleth, 1903-, 美国理论物理学家) Thomas Kurian was appointed head of Google Cloud in November 2018.

In March 2019, Oracle spent 24 years in charge of the cloud platform.Amitt.(Amit Zavery) was killed by Thomas.

Judging from the statements made on other occasions, including the launch ofTurnover plan

Investors, in particular, should consult Google's stock price to see its Cloud business.

At present, the market valuation of the Google Cloud business is very low, but analysts believe that such a low valuation is wrong.

One of the analysts, Lloyd.

Lei Feng also noted that Google recently announcedInvestment of 3 billion euros(about $3.3 billion), to expand the data center in Europe over the next two years, and

In addition, Thomas

Seven months earlier, Google had said it would invest $13 billion in the United States in 2019 to build data centers and new offices.

Google's revenue structure: search Hengqiang, Waymo bloodshed, maps, videos, cloud computing will become new drivers

Google Cloud is by no means the only valuable business for Google.

  • Waymo autopilot. In the past four quarters, Google's $3.9 billion loss of operations, the Waymo autopilot department appears to have taken up a significant part, although the value of Waymo is now a very speculative game. Prior to that, Morgan Stanley reduced Waymo’s valuation by$70 billion, with the latest valuation of$105 billion.
  • Google Maps. Google Maps, which Google has just tried to monetize, may be another valuable asset, either at a loss or at a modest profit. In August, Morgan Stanley predicted that map revenue would grow by 64% next year to $4.86 billion, and by 2023, total revenue would exceed $11 billion.
  • YouTube. While YouTube, now Google's second-largest driver of revenue growth after mobile search, is likely to make a profit, the company run by Google does not take into account short-term earnings. At present, YouTube's annual income is estimated at more than $15 billion.

In summary, with the further development of large enterprises, the liquidity of Google's large plate is expected to accelerate, and Google Cloud will become a very valuable asset.

Of course, whether or not Google Cloud achieves more than $17 billion in revenue in 2022, its IaaS / PaaS market continues to grow.AI/Machine Learning, IoT, big data analysis products andSupport for Open Source Software PlatformThe technical strength in the field has been revealed, and the overall business of Google Cloud is necessarily favorable, and the growth of the future is expected to be expected.

With the high-level and high valuations given by banks, Google Cloud is also bound to focus on a wave of market investors

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