As the Pressure on App Stores Rises, Google Is Cutting the Amount It Keeps from Sales on Its Cloud Marketplace
As the major internet corporations face increasing pressure to decrease their so-called take rates, Google reduces the revenue it keeps when consumers buy software from other suppliers on its cloud marketplace.
According to a source familiar with the situation who asked not to be identified to discuss internal regulations, the Google Cloud Platform reduces its revenue share from 20% to 3%.
- For purchases of third-party software through cloud marketplaces, Google mirrors Microsoft’s revenue share conditions.
- The change may entice other cloud businesses, allowing Google to cut its reliance on advertising even further.
- Big tech companies have been reducing the amount of money they keep on their platforms for consumer apps or corporate products in recent months. Some of the pressure stems from competitiveness, but there are also growing regulatory and legal issues.
Google Goes All-In on Hybrid Cloud
Google introduced a broad range of hybrid cloud services, all of which are controlled by Anthos. The company’s cloud-native management console is meant to supply compute at the edge of Google’s network of data centers, at a partner facility, or in a customer’s private data center.
- The objective behind the announcement was to bring clients along who might have specialized workloads that aren’t well suited to the public cloud.
- A solution might be deployed at the edge in one of Google’s global data centers, in a partner data center such as a telco or a colocation facility such as Equinix, or as part of a managed services within a company’s own data center.
- The entire strategy suggests that Google aims to carve out a piece of the cloud market for itself by taking advantage of a hybrid market opening. In the most recent quarterly report from August, Google achieved a 10% market share in the cloud infrastructure industry for the first time.