April 25, 2018

Google to expand data centers; reports rise in Q1 earnings

The expansion seeks to connect Google’s cloud platform in a bid to provide customers with scale and flexibility.

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Tech behemoth Google have decided to expand their cloud-based data centers to facilitate customers with scale and flexibility of services. This move has come shortly after Google announced their financial results for the first Quarter which have recorded a steep rise.

Google say that their parent company Alphabet have recorded a 26% year-on-year rise in revenue. They further added that their revenue has grown to USD 31.16 billion this year as opposed to USD 30.29 billion last year.

Along with their main products, Google say that their other bets and fringe products have also grown from USD 130 million last year to USD 150 million this year. They also believe that this growth, though minimal, is great given the fact that they have been able to cut losses on these new projects.

Explaining the rise in the earnings, Sundar Pichai, CEO at Google, commented:

Last quarter, we shared some exciting metrics about the progress of Google Cloud, including that we passed $1 billion per quarter in 2017. In Q1, we saw increasing momentum. We are growing across the board and are also signing significantly larger, more strategic deals for cloud.

Our security capabilities, the easy-to-use advanced data analytics and machine learning solutions and the secure and industry-leading collaboration platform, G Suite, are winning customers over. Google Cloud is growing well.

Speaking about their business ambitions, Google say that they have launched a new cloud scaling platform called ‘Partner Interconnect’. Through this platform, Google say that users will be able to choose the bandwidth of their choice.

Explaining the same in detail, John Veizades, Product Manager at Google, commented:

Partner Interconnect lets you connect to GCP from a convenient location, at a data rate that meets your needs.

In addition to this initiative, Google also say that they want to expand in Saudi Arabia after witnessing the demand for cloud-based data centers. They further added that they will soon be building a cloud region in the country.