Google: Another Cloud Giant After Amazon

According to an industry analyst on August 13, Beijing time, Google is expected to become another cloud giant after Amazon.

In a research note on Monday, Colin Sebastian, an analyst at Baird, said that Google's cloud business mainly provides Internet-based computing infrastructure, applications and services for enterprise users. This department can contribute $10 billion in revenue for Google every year, which might be more than the revenue contributed by YouTube.

Sebastian said: "Google is implementing a cloud strategy similar to Amazon's, providing various cloud services for small and medium-sized enterprises as well as large enterprise users; we estimate that its cloud service has already entered the early stage of profitability."

Enterprise users do not need to build their own data centers or pay expensive license fees and maintenance fees if they use Amazon or Google's cloud services. They only need to pay for the computing resources they use.

Sebastian wrote: "Cloud computing is a rapidly developing market area, and we believe that Google Apps alone can capture 20% of the enterprise email market. Importantly, Google has been able to provide many cloud services, including Google App Engine and Google Compute Engine."

He added: "Google's cloud business can contribute at least $10 billion in revenue for Google, and this service, like Amazon's AWS service, is very likely to lead to the downfall of some traditional IT vendors."