The head of Google cloud computing said that Google is moving part of its popular YouTube video service from the internal data center infrastructure of the advertising company to the company’s cloud computing service.
This effort shows that Google is looking inward as it seeks to expand its share of the growing cloud computing market and reduce its reliance on advertisements that appear on its web search engines and other products.
Historically, Google has always relied on self-built hardware systems to run its widely used applications on computer servers in its own data centers. Google Cloud Platform products have always existed alone, and Google has not made any efforts to migrate its search engine of the same name to Google’s public cloud.
But the company’s perception of the value of allowing its top products to use cloud services like third-party applications has changed. Google Cloud Computing CEO Thomas Kurian said in an interview with CNBC last month: “Part of the development of cloud computing is to allow our own services to use it more and more, and part of YouTube’s content is being transferred to the Google cloud.”
This change will bring Google more in line with its main competitors in the United States, Amazon and Microsoft. In 2019, Amazon said that after years of hard work in its consumer business, it has closed the last Oracle database and switched to the database of Amazon Web Services AWS. Microsoft is trying to make its LinkedIn social network and Minecraft online games more dependent on the company’s own Azure public cloud.
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According to Kurian, the productivity application bundled with Google Workspace was previously known as the G Suite, and the Waze navigation application and the DeepMind artificial intelligence research team both borrowed from Google’s cloud infrastructure.
YouTube is different. According to Amazon’s Alexa analysis tool, it is the second-largest website on the Internet with more than 2 billion users every month. Google acquired this property in 2006 for $1.65 billion.
Google’s decision to consume public cloud resources for YouTube and other consumer services may make life easier for the company’s sales staff. They have been trying to persuade the parent company to try to build on Google Cloud or run existing on Google Cloud Platform application. Sales staff said that Google Cloud is sufficient for the company’s mission-critical workloads.
Over time, this can boost Google’s cloud computing revenue. In the first quarter, nearly 58% of Google’s parent company Alphabet’s revenue came from Google search and other categories, including ads displayed on the Google web search engine, Gmail, Google Maps and other online destinations it operates. Google’s cloud computing business, including public cloud and Google Workspace, provides 7% of revenue, but the growth is significantly faster.
The cloud computing department has shrunk Alphabet’s operating profits, with billions of losses per year for at least three years, but Amazon Web Services, the largest cloud computing infrastructure provider in terms of revenue, has become a key source of profits.
According to data from the technology industry research company Gartner, Google has a 5% share of the cloud infrastructure market in 2019, while Amazon has 45% and Microsoft has about 18%. Gartner did not release more updated data.
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