How The Google Business Model works 

Google primarily was built as a search engine by Sergey Brin and Larry Page in 1998. After the initial success of Google search they kept creating different products that were appealing to the mass population on earth. Now it provides multiple products and services in the space of technology. Last year it generated revenues of $307 billion last year and its market cap got over $2 trillion.

Different Segment of Google And their contribution in revenue stream 

To manage and report google devices these businesses into different segments.

Those segments are

  1. Google services
  2. Google cloud 
  3. Google bets

These segments contribute differently in the overall Google revenue stream.

  1. Google services Segment 

This is the most important part of Google in terms of scale and revenue. Google provides service like Mobile phone operating system Android, , Chrome, Google maps, Google play, search and YouTube. .

Scale of these products 

These products are the most widely used products around the world. There are Billions of users of these products around the world.

SrService Users 
1Android 3.9 billion users world wide 
2Google Maps 1 billion people use per month 
3Google play 2.5 billion people use per month 
4Chrome 3.45 billion users 
5Google search 8.5 billion searches per day
6YouTube 4.95 Billion users 

 Revenues generated through Google services.

The Google services operates at such a huge scale, billions of people use these products the profits it generates through these products is enormous too. And this is the single biggest revenue generating segment for the google. It generated almost $272 billion for Google out $307 billion in 2023. Which is 88.5% of the revenue.

This segment is the back bone of all the google operations.  Both other segments are relatively very young and losing money. So, it very important for Google to keep the operations making profits

2. Google Cloud segment 

The Google Cloud segment is comprised of Google’s infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers. The majority of the segment’s revenue is generated from fees received for Google Cloud Platform services and Google Workspace collaboration tools.

Almost 500000 companies Google cloud services.

Google Cloud generated $33.08 billion in revenue in 2023.

  1. Other Bet’s segment 

Other Bets is a collection of experimental projects undertaken by Alphabet Inc., Google’s parent company. These projects focus on ventures that lie outside Google’s core advertising business and have the potential for long-term growth. Some of the most well-known Other Bets include.

Google management see the future in these companies so, they willing to put money in these businesses.

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