Workspace Drives Google Cloud Growth

Google’s cloud arm saw quarterly salesΒ hit $4bn

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Workspace drives Google Cloud revenue
Unified Communications & CollaborationNews

Published: April 28, 2021

Tom Wright

Managing Editor

Google has seen its cloud revenue pass the $4bnΒ markΒ in Q1Β with Workspace a driving factor, according toΒ CEO, Sundar Pichai.Β Β 

The unit, whichΒ also housesΒ Google Cloud Platform, saw sales riseΒ 46Β per cent year on year to $4.05bn, while losses narrowed from $1.7bn to $974m.Β 

PichaiΒ highlighted Workspace, formallyΒ namedΒ G Suite,Β asΒ the thirdΒ of three components driving cloud growth.Β 

β€œWe continue to deliver helpful innovations to enable hybrid work with Google Workspace,” he said.Β 

β€œThis includes digital tools for front-line workers like nurses and retail store workers, as well as new security offerings.Β 

β€œThese innovations have helped grow our revenue per seat and the number of seats in the last quarter”

β€œWorkspace is being adopted by customers includingΒ VerilyΒ in healthcare, Sun Life in financial services and Airbus in manufacturing and aviation.” 

Pichai said the other two areas driving cloud growth are data analytics and cloud infrastructure migration.Β 

He added Google Cloud Platform’s sales growth is β€œmeaningfully above” the growth of the overall cloud unit.Β 

TotalΒ sales for Google parent company AlphabetΒ grew 34 per cent year on year to $55.3bn. Operating income was up 30 per cent to $16.4bn.Β 

Google SearchΒ continues to be the mainΒ revenue driver,Β accounting forΒ 57 per cent of total sales.

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