Google Workspace Growing Seats and Sales-per-Seat

Google Cloud revenue hits $13bn annual sales

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Google Workspace grows revenue
Unified Communications & CollaborationNews

Published: February 4, 2021

Tom Wright

Managing Editor

Google’s Workspace platform grew both sales and sales-per-seat in Q4, the firm has revealed.

Google parent company Alphabet’s saw revenue rise 23 per cent year on year during the quarter ending 31 December 2020, up to $56.9bn.

Meanwhile Google Cloud – which houses Google Cloud Platform and Google Workspace – saw sales rocket 47 per cent to $3.8bn.

Google does not break out sales for the individual components of Google Cloud but CFO, Ruth Porat, said:

β€œGoogle Workspace revenues was driven by growth in both seats and average revenue per seat”

CEO, Sundar Pichai, added some colour to the numbers, claiming that Workspace is β€œdriving innovation at many of the fastest-growing companies”.

β€œGoogle Workspace, the industry’s only cloud-native communication and collaboration solution, is helping companies meet their evolving hybrid workplace needs,” he added.

β€œAdditionally, this quarter, we expanded our partnership with SAP. They’ll extend their usage of Google Cloud for their cloud solutions, including SAP Business Technology platform, to provide the best experience for our joint customers.”

CFO Porat went on to say that Google has been β€œinvesting aggressively” in its cloud unit, due to the β€œsubstantial market opportunity” it is seeing, revealing that sales have doubled since 2018 to $13.1bn in 2020.

Ruth Porat, Google CFO
Ruth Porat

She added that Google is on course to meet its goal of tripling the size of its direct cloud sales team, while also expanding its channel partner ecosystem.

β€œWe’ve also substantially improved our product offering while rationalising our approach to focus on our six key industry verticals and we’ve invested in expanding our network of locations for compute capacity to support cloud, ending 2020 serving customers in 24 regions and 73 zones.”

Google Cloud has previously named its six key verticals: financial services; healthcare; retail; manufacturing; communications, media and entertainment; and public sector.

The firm rebranded G Suite as Workspace last year.

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