Google Cloud CEO Thomas Kurian draws a rosy picture of a cloud service provider. During the Goldman Sachs Technology Conference in San Francisco, he said the company has an outstanding agreement of about $106 billion. He said more than half of that could be converted into revenue over the next two years.
In the second quarter of 2025, parent company Alphabet reported $13.6 billion in revenue from Google Cloud, up 32% year-on-year. If the forecast is correct, according to the register, this means that cloud service providers can add around $53 billion in additional revenue by 2027.
Google Cloud's market position is often compared to the position of its biggest rival market. Microsoft reported Azure's annual revenue of $75 billion this year, while AWS recorded $30.9 billion in the same quarter, growing 17.5%.
Fastest migration to the cloud
Kurian emphasized that many companies are still running IT systems on-premises. He hopes the move to the cloud will accelerate, and artificial intelligence is playing a critical role. Customers are increasingly looking for suppliers who can help them transform their business operations with AI applications rather than simply hosting services.
Google claims there are advantages in this regard thanks to its own investment in AI infrastructure. The system is said to be energy efficient and provide more computing power than its competitors. According to Kurian, the storage and network are designed to allow you to easily switch from training to inference.
For investors, the most important thing is how AI is converted into revenue. Kurian mentioned usage-based rates, subscriptions, and value-based models, such as payments such as stored service requests or higher ad conversions. Furthermore, the use of AI will increase the purchase of security and data services.
According to Kurian, 65% of customers use Google Cloud AI tools. On average, this group buys more products than organizations that don't use AI yet. Examples of applications include digital product development, customer service, back-office processes, and IT support. For example, Google supported Warner Bros. Reedit The Wizard of Oz For the Las Vegas sphere, and Home Depot uses AI to answer HR questions more quickly.
Kurian's message: Cloud infrastructure is truly profitable only if a company purchases AI services on top of it. This will ensure that Google Cloud is firmly positioned in the next stage of the cloud market.
