operating the infrastructure because the infrastructure is already highly automated in the cloud. They want somebody who is not just going to train an AI model, but they’re going to continue to refresh that model and update that model. So this next genera- tion of MSPs that our customers are asking for is like an AI MSP that maintains that model, trains the model, refreshes the model and makes sure there’s not bias in the model. It’s not a one-time thing. It’s an ongoing thing.” Kurian’s Leadership Key To Partner Ecosystem Growth Before Kurian joined Google Cloud in late 2018, the company was generating annual revenue of $5.8 billion. This year, Google Cloud’s annual revenue stands at $33.6 billion, representing a 479 percent revenue increase in just five years. “Thomas Kurian taking on the role at Google Cloud as CEO was
Cloud for their AI journey, Kurian said one “simple” strategy made it possible. “We started with a very simple premise: Our success has to drive our partner success, and our partner success has to drive our success. So we didn’t look at the business as a fixed pie where we give business to our own consultants versus the partners. We said, ‘This is going to be the bigger the pie, the better for everybody,’” he said. Compared with some of its AI and cloud competitors, Google Cloud does not have a large internal services organization. Instead, it relies on systems integrators, consultants, ISVs and MSPs to drive services sales, Kurian said. “Unlike the competitors who have large services organiza- tions, we’re not going to customers saying, ‘You have to use our services.’ In fact, we’re telling customers, ‘Start with your systems
a pivotal moment, not just for Google Cloud but for the entire partner eco- system,” said Asif Hasan, CEO of Quantiphi, an AI and data science soft- ware and services Google Cloud Premier Partner based in Marlborough, Mass. “Google Cloud’s
integrator, the consultant, the technology partner, the AI MSP that you’re comfortable with.’ What we’re going to do is make our services people assist them on the project. That’s a very different approach than saying, ‘Well, I’m not sure if my partner has the
‘ e degree of investment that we have seen in Google positioning its generative AI solutions in front of customers this year has been unprecedented.’ — Asif Hasan, CEO, Quantiphi
trajectory has been completely transformed, and the numbers are there to prove it. It’s not just revenue, but it’s also the profit- ability—which is a much harder problem to solve.” For the first time in its history, Google Cloud reported profit- ability during the first quarter of 2023 of $191 million, up from an operating loss of $706 million the year prior. In the second quarter of 2023, Google Cloud generated a profit of $395 million compared with a loss of $590 million year over year, representing a nearly $1 billion operations improvement. During the third quarter of 2023, Google Cloud maintained profitability for the third straight time by reporting an operating profit of $266 million compared with a loss of $440 million year over year. Quantiphi’s CEO said that thanks to Google Cloud’s partner- first mindset, his company’s head count exploded from 500 people in 2018 to now 3,200 employees.Although Quantiphi also part- ners with AWS and Microsoft, Google Cloud is the company’s foundation in the new AI era. “In all of 2022, we did 20 to 25 [GenAI] projects. In 2023 as of October, we’ve already surpassed 300 opportunities,” said Hasan. “The degree of investment that we have seen in Google positioning its generative AI solutions in front of customers this year has been unprecedented.” Kurian On The ‘Heart’ Of Google Cloud’s Success And ‘New Frontier’ Of AI When questioned about how he was able to drive such high revenue growth, profitability and have customers pick Google
expertise so I’m taking the business direct,’” said Kurian. From dozens of Google Cloud partners in 2018 prior to Kurian joining, the company now has over 100,000 partners. Kurian said the company’s success has come by building the best technology, helping partners create solutions with it, then building a field and go-to-market organization based on bringing partners into customers. “Everyone across my entire go-to-market organization under- stands the value of that. So [recognizing that] has been the heart of our success,” he said. Overall, Google Cloud is in prime position to become the worldwide leader in GenAI and artificial intelligence broadly, Kurian said. “AI is the new frontier, and we want partners to get value from this next technology revolution. Because we think the platforms that win in the end are the ones that are most open and the most partner-friendly. Because if partners can bring solutions to our customers, that in the end is what makes everybody successful,” he said. “From small to large companies, we see tons of interest [in GenAI], and it’s the one time where we’ve seen the demand emerging globally,” said Kurian. “We want every partner to know we welcome them, and we’re investing heavily in these programs. We’re giving them the ability to build a business with us in an area that we are seeing extraordinary customer interest, not just from the IT departments, but also from the lines of business who want to use AI to change themselves.”
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