Global CIO: Enterprise Apps Not Among Products Google's REALLY Excited About - InformationWeek
Mobile // Mobile Applications
07:23 PM
Chris Murphy
Chris Murphy
Connect Directly
[Dark Reading Crash Course] Finding & Fixing Application Security Vulnerabilitie
Sep 14, 2017
Hear from a top applications security expert as he discusses key practices for scanning and securi ...Read More>>

Global CIO: Enterprise Apps Not Among Products Google's REALLY Excited About

Google went out of its way to highlight a few of its emerging growth businesses and share more detailed financial numbers than usual. Hey, why not enterprise apps?

Google's latest earnings conference call was special. This time--one-time only, not to be repeated in the coming quarters--executives promised to offer some financial results on Google's most important emerging growth businesses.

Google's leaders chose to highlight powerful results in its display advertising, YouTube advertising, and mobile advertising segments. They chose not to say anything about Google's enterprise apps business.

Why not? I don't know. But every time Google passes on such an opportunity, it misses a chance to assure CIOs that Google is every bit as committed to enterprise apps as the IT execs who bet their careers and businesses on implementing Google Apps in their companies.

The businesses Google execs did highlight share a common thread--a billion, with a B:

$2.5 billion: That's the annual revenue run rate for Google's display advertising, meaning banner, branding kind of ads, as opposed to the search-related text ads that are Google's core.

2 billion: That's the number of YouTube views per week that Google's now getting paid for.

$1 billion: That's the annual revenue run rate for Google's mobile advertising.

"All these businesses are growing," said Jonathan Rosenberg, senior VP of product management. "I hope this gives you a sense of why we're so excited about the incredible emerging businesses at Google." (A replay of the call is here. )

So is enterprise apps anywhere near that magical $1 billion annual revenue mark? Here's what the financial statements say.

Enterprise app subscriptions fall under Google's "Other" line on the financial statement. That Other line is booming--up 35% year over year, faster growth than Google revenue overall (which was up 23%). And that Other line is past the $1 billion-a-year revenue run rate: $254 million for this quarter. Yes, that's a pittance compared to Google's $7.3 billion total revenue for the quarter, but $1 billion was enough to be excited about mobile search, since it's a vital to the future of the company.

Of course we don't know how much of that Other line is enterprise apps. The only thing we learn about that number in the conference call is that it used to include Google's direct sales of the Nexus One phone; dropping that product led to a slight dip in quarter-over-quarter Other revenue. So, maybe enterprise apps is still just too small a business to make the cut. Or maybe it's not growing fast enough, or not profitable enough. Maybe it's no more complicated than that.

Google has every reason to tout it enterprise apps business, if it's thriving. Every other emerging revenue source it talked about focused on advertising. If it had anything close to a $1 billion-a-year business that wasn't based on advertising, that helped diversify a company that's constantly labeled a one-trick pony, shouldn't Google leaders be excited about it?

1 of 2
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll