> It actually seems pretty amazing that what HN thinks is Google's failed side hustle is comparable to the entire business of what would have been considered tech giants a few years ago.
Because it all pales in comparison to what actually powers Google: ads. To the point that there are persistent and growing rumours that GCP may be if not on the chopping block, but greatly de-prioritised (it's part of the 26-billion Google Cloud).
It's also weird to me that people always look at revenue only. As if net income doesn't matter.
For example [1], non-ad business may have brought in 60 billion in revenue, but what it is I see: "The increase in other cost of revenues from 2021 to 2022 was primarily due to increases in data center costs and other operations costs as well as hardware costs." And that cost is 77 billion.
Guess what Google's the non-ad businesses are: "Google other revenues increased ... from 2021 to 2022 primarily driven by growth in YouTube non- advertising and hardware revenues", "Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform."
So a large chunk of that revenue is eaten by the costs of generating that revenue. Google cloud lost 3 billion, other bets lost 6 billion etc.
Meanwhile all other costs of revenue are a 49 billion, compared to over 200 billion in revenue from ads.
So how do those businesses inderectly depend on ads? Ads business subsidises them. Despite the size of those other businesses very few, if any, are successful (as in: actually earn money).
Because it all pales in comparison to what actually powers Google: ads. To the point that there are persistent and growing rumours that GCP may be if not on the chopping block, but greatly de-prioritised (it's part of the 26-billion Google Cloud).
It's also weird to me that people always look at revenue only. As if net income doesn't matter.
For example [1], non-ad business may have brought in 60 billion in revenue, but what it is I see: "The increase in other cost of revenues from 2021 to 2022 was primarily due to increases in data center costs and other operations costs as well as hardware costs." And that cost is 77 billion.
Guess what Google's the non-ad businesses are: "Google other revenues increased ... from 2021 to 2022 primarily driven by growth in YouTube non- advertising and hardware revenues", "Google Cloud's infrastructure and platform services were the largest drivers of growth in Google Cloud Platform."
So a large chunk of that revenue is eaten by the costs of generating that revenue. Google cloud lost 3 billion, other bets lost 6 billion etc.
Meanwhile all other costs of revenue are a 49 billion, compared to over 200 billion in revenue from ads.
So how do those businesses inderectly depend on ads? Ads business subsidises them. Despite the size of those other businesses very few, if any, are successful (as in: actually earn money).
[1] All quotes and numbers from Google's own 10-K: https://abc.xyz/investor/static/pdf/20230203_alphabet_10K.pd...