Google is still an advertising company, but the tech titan’s cloud business is growing faster than its advertising revenue. That’s one of the key take-aways from the company’s first quarter earnings report released Thursday.
Google Cloud Platform is one of the fastest-growing lines of revenue across Alphabet, the parent company that includes Google and other businesses like self-driving car maker Waymo, company CFO Ruth Porat said on a conference call with analysts. That growth is driven in part by a change in the way companies are working with Google Cloud.
“Over the last several months, we have noticed a change in the types of conversations that Diane [Greene] and her team are having with customers,” Google CEO Sundar Pichai said. “Increasingly, we are being asked to partner for mission-critical projects and full migrations, moving data from on-prem data centers to the cloud. We are seeing a meaningful shift, and this momentum is resulting in a fast-growing business.”