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November 19, 2015

Will cloud overtake search in Google revenue?

News: Company aims to be a cloud company by 2020.

By James Nunns

Google’s Cloud Platform revenues could surpass the Internet giant’s advertising revenue within the next five years.

That is according to Urs Hölzle, Google’s SVP for technical infrastructure and the company’s eighth employee.

The task would be a big one; currently the company generates 89% of its revenues from advertisers, mainly from its search ads.

At the Structure conference in San Francisco, Hölzle, said: "The goal is for us to talk about Google as a cloud company by 2020."

Currently positioned behind Microsoft Azure and AWS in the cloud market, he said: "we’re clearly coming from behind."

While he identifies this, he predicts to see big changes in the next five years, he said: "I think the next five years in cloud will be much more evolution than the last five years."

With catching up to AWS and Microsoft Azure in mind, the company has developed a new way of buying virtual machines in its cloud.

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The company’s Custom Machine Types will allow the customer to pick exactly how many CPUs and how much RAM you want for your machine.

The tool which is in beta, will enable the user to specify how many vCPUs and how much memory you need, up to 32 vCPUs and up to 6.5 Gb per vCPU.

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