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Alphabet has published contrasting results for its fourth quarter of 2024. Despite a progression of 30 % of Google Cloud’s turnover Over a year, the branch did not reach the expectations of Wall Street, displaying $ 11.96 billion income against 12.19 billion anticipated. In a market dominated by Amazon Web Services (AWS) and Microsoft Azure, the rise of artificial intelligence (AI) is not enough, at this stage, to reposition Google as a leading actor.
A persistent delay on AWS and Azure
Despite massive investments, Google Cloud stagnates in third position On the Cloud Computing market, far behind AWS and Microsoft Azure. According to Synergy Research Group, in the third quarter of 2024, AWS held approximately 31 % of market shareMicrosoft 24 %and Google Cloud 11 %. A gap that is reflected in income dynamics: AWS and Azure continue to display solid growth rates while maintaining high profitability, while Google Cloud is struggling to fully monetize its technological innovations.
If Google was one of the first players to integrate AI into its cloud, demand is currently exceeding its capacitiesas recognized by financial director Anat Ashkenazi at the conference with investors:
“We have observed high demand for our AI products in the fourth quarter and we have finished the year with a demand greater than our available capacities. »»
This constraint slows down the conversion of commercial opportunities and leaves a boulevard to Microsoft and AWS, which have more robust infrastructure to absorb demand.
Microsoft and AWS ‘strategic advance
Microsoft’s cloud ecosystem benefits from an exceptional lever with OPENAIwhich feeds a massive adoption of its IA services via Azure. By integrating Chatgpt and Copilot In its suite of cloud and software products, Microsoft has binded the generative AI to its company offer, and captures a significant volume of new customers.
AWS, for its part, is focusing on a very pragmatic strategy: rather than offering owners’ solutions, Amazon is focusing on theinteroperability and theOpening to third -party modelsthus attracting a wide spectrum of companies seeking to develop their own AI applications.
Faced with these differentiated approaches, Google Cloud is struggling to impose Google Deepmind as an immediate competitive advantage. If his expertise in AI is undeniable, the monetization of his advances remains complicated.
Massive investments to try to fill the gap
To meet the growing intensive calculation needs linked to AI, alphabet provides for record investment expenses of $ 75 billion in 2025far beyond 58.84 billion anticipated by analysts. A significant part will be allocated to servers and data centersin order to increase the ability of Google Cloud.
However, this strategy presents a risk: The market sanctions expenses without short -term king. Consequently, the alphabet action fell from 9 % in post-market.