Google Cloud Turns a Profit and Extends the Life of Servers
In the three years since reporting financial metrics Google's cloud business has announced they have turned a profit. Their offerings under this umbrella include Google Cloud Platform and Google Workspace. These two products now account for 10 percent of parent company Alphabet's total revenue. Buried in an SEC filing is news that Google will extend the estimated useful life of its servers and networking equipment to 6 years. While this is phrased as financial engineering, it also reflects a change in how Google, and other hyperscalers, will purchase and buy servers. What are the ramifications of this change? Does this mean the cloud business will remain a priority for Google going forward?
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