Google is moving parts of YouTube to its cloud service

2 weeks ago 17

Sundar Pichai, Alphabet CEO

David Paul Morris | Bloomberg | Getty Images

Google is moving parts of its fashionable YouTube video work from the advertizing company's interior information halfway infrastructure to the company's unreality service, the caput of Google's unreality said.

The effort indicates Google is looking inward arsenic it seeks to grow its stock of the increasing cloud-computing marketplace and go little reliant connected advertisements appearing connected its web hunt motor and different properties.

Historically, Google has leaned connected its ain systems to tally its astir wide utilized applications crossed machine servers successful its information centers. The Google Cloud Platform offering has coexisted separately, and Google has not undertaken the effort to migrate its eponymous hunt engine, for example, to the Google nationalist cloud.

But the company's position connected the worth of having its apical products usage the unreality conscionable similar third-party applications has shifted.

"Part of evolving the unreality is having our ain services usage it much and more, and they are," Thomas Kurian, CEO of Google Cloud, told CNBC successful an interrogation past month. "Parts of YouTube are moving to Google Cloud."

The alteration volition bring Google much successful enactment with its main U.S. competitors, Amazon and Microsoft.

In 2019 Amazon said its user concern had turned disconnected its last Oracle database successful favour of databases from Amazon Web Services, aft years of work. Microsoft has sought to marque its LinkedIn societal web and Minecraft video game much babelike connected the company's ain Azure nationalist cloud.

The Google Workspace bundle of productivity apps formerly known arsenic G Suite, the Waze navigation app and the DeepMind artificial-intelligence probe radical each gully connected Google unreality infrastructure, Kurian said.

YouTube is different. It's the 2nd largest website connected the internet, according to Amazon's Alexa analytics tool, with implicit 2 cardinal users each month. Google bought the spot successful 2006 for $1.65 billion.

Google's determination to devour public-cloud resources for YouTube and different user services mightiness marque beingness easier for the company's salespeople, who are perpetually trying to transportation ample companies to effort gathering connected the Google unreality oregon moving existing applications connected the Google Cloud Platform. Salespeople volition beryllium capable to accidental the Google unreality is bully capable for the company's business-critical workloads.

That, implicit time, could boost Google's unreality revenue. In the archetypal 4th nearly 58% of Google genitor Alphabet's revenue came from the Google Search and Other category, which includes advertizing displayed connected Google's web hunt engine, Gmail, Google Maps and different online destinations it operates. Google's unreality business, which includes the nationalist unreality and Google Workspace, delivered 7% of gross but grew faster.

The unreality portion has narrowed Alphabet's operating borderline with billions successful yearly losses for astatine slightest 3 years, but the largest unreality infrastructure supplier by revenue, Amazon Web Services, has go a cardinal root of profit.

Google held 5% of the unreality infrastructure marketplace successful 2019, portion Amazon had 45% and Microsoft had astir 18%, according to exertion manufacture probe institution Gartner. Gartner has not released much caller figures.

WATCH: Google Cloud's Thomas Kurian connected the aboriginal of unreality and Google