Can Google Cloud revenue reach $ 20 billion by 2020?

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While Google remains the dominant search engine in the world, but growth in the company's margin will likely be affected by investments to ensure that Google complies with data privacy laws around the world. One of the main drivers of Google's future growth will likely be its cloud business. The company's management not only continues to invest significantly in space, but is also the fastest-growing company. In fact, we expect Google's cloud commerce growth to be significantly higher than its growth rate of & nbsp; more firmly anchored competitors – Amazon (AWS) and Microsoft (Azure).

Coupled with Google's reach, we expect cloud commerce to help it achieve strong growth. As a result, we have revised our price estimate for the company to $ 1,250 per share. Our interactive dashboard on $ 20 billion revenue in Google Cloud is possible by 2020? details our expectations of the industry and examines its potential for Google. You can change any of the key factors to see the impact of changes and see all the information. Trefis technology company data here.

What is the Google opportunity in the cloud? & Nbsp;

The hiring of Thomas Kurian by Google was a clear signal from the company that she was pushing her third place in the cloud (behind AWS from Amazon and Microsoft Azure) in which her platform was stuck for a long time. At the company's fourth quarter call, management also indicated that significant product and sales investments were underway in the cloud to reduce the company's reliance on its research activity. has been subject to careful regulatory review.

We believe that Google's product capabilities and distribution can help Google Cloud drive substantial growth in its Cloud business, and even progress in the hierarchy in the cloud. In addition to the quasi-utilitarian nature of the company's research activity, the cloud computing business could help boost cash flow.

While Google only revealed for the fourth quarter of 2017, the company's revenue in the cloud has exceeded $ 1 billion per quarter, estimates suggest that the cloud could account for nearly $ 6.5 billion dollars a year for the company.

How big can Google Cloud get in the short term?

• In addition to revenue from Google Play and hardware, Google's cloud revenue is in the "Other Google revenue" segment.
• Gartner estimates that the total cloud market is expected to grow from $ 182.5 billion in 2018 to $ 331.2 billion in 2022, with a CAGR of 16.1 percent.
• We badyzed management's comments over the last six quarters and estimated that GCP's activities could have contributed $ 6.5 billion to Google's 2018 revenue. In the future, we expect the company to reach a CAGR of 25% over the next three years. Our estimates are based on our understanding of the cloud market and Google's position in it.
• The annualized growth of the other main market players has been between 40 and 60% in the last two years. We expect the fast pace of GCP's revenue growth to fade, so the company's total revenue will reach $ 18 billion by 2020, as shown in the chart below. Based on our calculations, GCP's growth could lead the industry to represent 9% of Google's total revenue by 2020.

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Although Google continues to be the leading search engine in the world, the company's margin growth will likely be affected by investments to ensure that Google complies with data privacy laws around the world. One of the main drivers of Google's future growth will likely be its cloud business. The company's management not only continues to invest significantly in space, but is also the fastest-growing company. In fact, we expect that the growth of Google's cloud business will be significantly higher than that of its more entrenched competitors, Amazon (AWS) and Microsoft (Azure).

Coupled with Google's reach, we expect cloud commerce to help it achieve strong growth. As a result, we have revised our price estimate for the company to $ 1,250 per share. Our interactive dashboard on $ 20 billion revenue in Google Cloud is possible by 2020? details our expectations of the industry and examines its potential for Google. You can change any of the key factors to view the impact of the changes and view all Trefis technology company data here.

What is the Google opportunity in the cloud?

The hiring of Thomas Kurian by Google was a clear signal from the company that she was pushing her third place in the cloud (behind AWS from Amazon and Microsoft Azure) in which her platform was stuck for a long time. At the company's fourth quarter call, management also indicated that significant product and sales investments were underway in the cloud to reduce the company's reliance on its research activity. has been subject to careful regulatory review.

We believe that Google's product capabilities and distribution can help Google Cloud drive substantial growth in its Cloud business, and even progress in the hierarchy in the cloud. In addition to the quasi-utilitarian nature of the company's research activity, the cloud computing business could help boost cash flow.

While Google only revealed for the fourth quarter of 2017, the company's revenue in the cloud has exceeded $ 1 billion per quarter, estimates suggest that the cloud could account for nearly $ 6.5 billion dollars a year for the company.

How big can Google Cloud get in the short term?

• In addition to revenue from Google Play and hardware, Google's cloud revenue is in the "Other Google revenue" segment.
• Gartner estimates that the total cloud market is expected to grow from $ 182.5 billion in 2018 to $ 331.2 billion in 2022, with a CAGR of 16.1 percent.
• We badyzed management's comments over the last six quarters and estimated that GCP's activities could have contributed $ 6.5 billion to Google's 2018 revenue. In the future, we expect the company to reach a CAGR of 25% over the next three years. Our estimates are based on our understanding of the cloud market and Google's position in it.
• The annualized growth of the other main market players has been between 40 and 60% in the last two years. We expect the fast pace of GCP's revenue growth to fade, so the company's total revenue will reach $ 18 billion by 2020, as shown in the chart below. Based on our calculations, GCP's growth could lead the industry to represent 9% of Google's total revenue by 2020.

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