The growing popularity of cloud technologies has resulted in record-breaking financial results for both Google and Intel in this round of financial results.
Intel overall earnings were up 19% year-on-year, the company revealed, with its data centre operation raking in $6.14 billion in revenue, surpassing its estimates of $5.89 billion and deserving of its second-place entry in Intel’s total most profitable divisions.
The company said its cloud growth was down to cloud demand and communications service provider demand. CFO and interim CEO Bob Swan said the latter group is growing to drive a significant proportion of its cloud customer revenue as they “continue to transform their networks with Intel architecture as they prepare for 5G”.
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Google’s Cloud revenues were also on the up, giving a boost to parent company Alphabet’s earnings. However, it’s tricky to give precise results for the company’s cloud-specific revenues as its lumped together in the Google Other Revenue section, which also includes Google Play.
But nonetheless, revenues in that generic pot were up 29% and CEO Sundar Pichai said that’s thanks to the company’s investment in machine learning and commitment to open infrastructure.
“We’re very aligned with where the market is headed in the long run,” he said on the earnings call. “And this notion of supporting open architecture so that enterprises don’t feel locked in and allowing for a multi-cloud environment to develop. That’s the direction we are betting on and our indications are that the market is headed in that direction as well.”