google cloud

google-earnings:-100-million-google-one-subscribers,-google-cloud-profits

Google earnings: 100 million Google One subscribers, Google Cloud profits

Do you have 6M Sunday Ticket subscribers yet? Probably not —

We highlight the interesting numbers from Google’s earnings call.

Alphabet’s earnings call was yesterday, and as usual, the company took in a lot of money ($86.31 billion), thanks mostly to ad click-through rates being at a certain level. More interesting, though, are the product numbers tucked away in the report.

For the good news, a big announcement was the success of one of Google’s biggest subscription plans, Google One, which CEO Sundar Pichai said is “just about to cross 100 million subscribers.” Google One is mostly a cloud-storage plan for Google accounts, allowing users to pay a monthly fee to get more than the 15GB of Drive and Gmail storage that comes free with a Google account. Pichai says the company’s whole subscription business—which is going to be Google One (storage), Google Workspace (business accounts), YouTube Premium (ad-free YouTube), and YouTube TV (a cable TV alternative)—are up to $5 billion in annual revenue. That’s up fivefold since 2019.

Speaking of subscriptions, one of Google’s most expensive, the $350-a-year NFL Sunday Ticket, didn’t have any hard numbers associated with it. Google SVP and CBO Philipp Schindler said the company was “pleased with the NFL Sunday Ticket signups in our first season.” Sunday Ticket was always a money-loser for DirecTV, and that was before the price shot up half a billion in the streaming era. Google is now reportedly on the hook to pay the NFL $2 billion a year for the next seven years. When asked about a return on investment for the project, Schindler only cited “solid” advertiser interest and that “NFL Sunday Ticket supports our long-term strategy and really helps solidify YouTube’s position as a must-have app on everyone’s TV set.”

The year 2023 was also the first time Google Cloud recorded a profit. Cloud is Google’s attempt to compete with Amazon Web Services as a platform for the cloud-based infrastructure needs of developers. After years of investment and growth, Cloud made $864 million in Q4 2023. It lost $186 million over the same period in 2022. According to a recent Canalys report, Google Cloud’s market share is in a distant third (10 percent) behind Microsoft Azure (25 percent) and the leader, AWS (31 percent).

For a while, Cloud’s third-place position could at least be offset by stronger growth than its competitors, but that Canalys report now has Microsoft with the highest growth rate, thanks to interest in its AI solutions. Microsoft is partnered with OpenAI, the creators of ChatGPT. Pichai spent a lot of time talking about Google Cloud’s competing AI work, but OpenAI has a level of hype and interest that can’t be matched by Google’s Bard/Gemini talk.

I don’t think we ever got a clear number for exactly how many people Google laid off in 2023. The company announced 12,000 layoffs in January, saying US employees had “already” been notified, while international employee layoffs would “take longer due to local laws and practices.” The company then laid off various employees across divisions throughout the year. Whatever the final cuts ended up being, the overall headcount only changed from 190,234 in December 2022 to 182,502 at the end of 2023, a net loss of about 8,000 people. Google was still hiring a lot during those layoffs.

One hundred eighty-two thousand employees is still a lot. Google’s headcount at the end of 2021 was 156,000 employees, and some Wall Street investors want to see the company return to that number. Pichai told employees to brace for more layoffs “throughout the year,” though the CEO says they wouldn’t be at the scale of 2023. Google’s downsizing cost a lot of money, with the company spending $2.1 billion on employee severance and $1.8 billion on office space exit charges for 2023.

Listing image by Getty Images | Alexander Koerner

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let’s-attempt-to-decode-google’s-confusing-new-location-data-settings

Let’s attempt to decode Google’s confusing new location data settings

Oh, good, my lawyer wanted a new porsche —

The new Google Maps Timeline plays a game of three-card monte with your location data.

Let’s attempt to decode Google’s confusing new location data settings

Google announced big changes to its most legally fraught set of user settings: your location data. Google’s misleading Location History descriptions in Google Maps have earned it several lawsuits in the US and worldwide. A quick count involves individual lawsuits in California, Arizona, Washington, a joint lawsuit in Texas, Indiana, and the District of Columbia, and another joint lawsuit across 40 additional US states. Internationally, Google has also been sued in Australia over its location settings. The point is that any change to Google’s location settings must have some motive behind it, so bear with us while we try to decode everything.

Google’s big new location data change is a new, duplicate data store that will live exclusively on your device. Google’s new blog post says data for the long-running Google Maps Timeline feature will now “be saved right on your device—giving you even more control over your data.” That’s right, one of the world’s biggest Internet data companies advocates for local storage of your location data.

The company continues, “If you’re getting a new phone or are worried about losing your existing one, you can always choose to back up your data to the cloud so it doesn’t get lost. We’ll automatically encrypt your backed-up data so no one can read it, including Google.” Users will apparently have lots of control over this new locally stored data, with Google saying, “Soon, you’ll be able to see all your recent activity on Maps… in one central place, and easily delete your searches, directions, visits, and shares with just a few taps. The ability to delete place-related activity from Maps starts rolling out on Android and iOS in the coming weeks.”

The new Google Maps Timeline pop-up.

Enlarge / The new Google Maps Timeline pop-up.

Google

Some companies pitch the “on-device storage” of data as a security feature. The idea is that on-device data isn’t in the cloud, and instead is encrypted on your device, and therefore is more secure since you must have physical access to the device to get the data. This is usually how biometrics are stored, for instance. That’s not happening here, though. Google’s post says, “The Timeline feature in Maps helps you remember places you’ve been and is powered by a setting called Location History.” Location History is all the location data collected by Google, and the Google Maps Timeline is only a subset of that data. So, with on-device storage, Google Maps Timeline will now be a second copy of a subset of your location data. Cloud-based Location History will still exist and still be collected. Instead of the additional security of encrypted on-device storage, this is less secure since your data will now be in two places, or maybe multiple places, if you have multiple devices.

Google was sued in nearly every US state because of its misleading communication about where your location data is stored and what the controls do. Before all the lawsuits, Google had a checkbox for “Location History” that you could turn on and off, but at the time, “Location History” didn’t mean “all the stored location history across your Google account.” Back then, “Location History” was the name of a specific page in Google Maps, and turning off the Location History checkbox just hid the Location History interface—it didn’t reduce Google’s location data collection and storage. Today, that has changed, and in the wake of all those lawsuits, Google says Location History actually controls the storage and collection of location data across your entire account.

Promoting controls for the “Google Maps Timeline” feels like Google is pulling the same old “Location History” trick. Data controls for the Maps Timeline don’t control the data for your entire account, but instead only control data for this specific interface in Google Maps. Google says you’ll get “the ability to delete place-related activity from Maps,” but that’s from Maps only. Let’s not fall for Google’s app-specific settings trick again: You don’t want the ability to delete location data “from Maps”; you want the ability to delete location data from “your entire account.”

Google's new delete button doesn't seem like it delete's much.

Google’s new delete button doesn’t seem like it delete’s much.

Google

My interpretation of the strategy is that Google’s going to make two different copies of your location data, a cloud-based one that it has access to (Location History) and a locally stored one that it does not have access to (Google Maps Timeline), and it’s going to dangle a bunch of controls in front of users that control the local data store only. A pop-up (shown above) briefly shown in one of the blog post videos seems to confirm this, with the “Delete Maps Activity?” pop-up saying it won’t delete data from Location History or Web & App Activity. I guess the hope is that interested users will be distracted by the upfront controls for the unimportant, private, local data store and then forget about the more hidden controls for the cloud-based one that Google has access to.

Any justification for why the company is creating more complicated and confusing location controls is absent from Google’s blog post. What is the benefit of having an extra copy of locally stored location data? Why would you want two different copies of location data to manage? The only new feature you’re getting is the ability to delete data from the new local data store, but you wouldn’t need those controls if the data store didn’t exist in the first place. Why would users want to delete data from their local location history but not the cloud? A local copy of location data only makes sense if Google stops collecting and storing location data in the cloud; I can promise you that it’s not doing that.

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