Google cuts jobs at cloud-computing group

Re:Google cuts jobs at cloud-computing group by bretpiatt on Friday February 14, 2020 @09:09PM (#22332604)

Do you have any evidence to believe Google Cloud Platform is negative gross profit?

My background in the industry would lead me to believe GCP (just the infrastructure, not the applications) is 70%+ gross margin with the hardware (and data center) cost (depreciation if capitalized) above the gross margin line.

For a business at that growth rate running a GAAP negative net income is easy to do while still building a high quality profitable long term business.

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Re:Google cuts jobs at cloud-computing group by scarface74 on Friday February 14, 2020 @09:14PM (#22332633)

I’ve made no statements either way. I was responding to the relatively naive idea that increasing revenue without profit was a measure of “success”.

But, cloud companies don’t just have to worry about hardware and infrastructure. They also have to worry about software engineers, “enterprise sales solution architects” and a whole host of other costs.

[ Parent | on HN ]