Google is moving parts of YouTube to its cloud


Google is moving parts of the popular YouTube video service from the advertising company's internal data center infrastructure to the company's cloud service. This effort suggests that Google is looking inward as it seeks to expand its share of the growing cloud computing market and become less dependent on ads that appear through its search engine. Google has historically relied on its own systems to run the most-used applications across computer servers in its data centers.

The Google cloud platform presentation coexists separately. Google made no effort to migrate its eponymous search engine, for example, to the company's public cloud. But the company's perspective on the value of using its best products to the cloud has changed just as much as third-party applications have. Part of developing the cloud is getting our services to use it more, the company said last month. Portions of YouTube are transferred to the cloud platform.

Change helps Google

The change brings the search giant more in line with its main US competitors, Amazon and Microsoft. In 2019, Amazon said its consumer business had retired Oracle Database in favor of databases from AWS, after years of work. Microsoft has also sought to make its social network LinkedIn and Minecraft more dependent on the company's Azure public cloud.

The Google Workspace suite of well-known productivity apps, Waze navigation app, and DeepMind AI research group rely on the search giant's cloud infrastructure. But YouTube is different, as it is the second-largest website on the Internet with more than 2 billion users every month. Google bought the platform in 2006 for $1.65 billion.

And Google's decision to move YouTube and other consumer services could make it easier to convince large companies to try to build on Google's cloud or run existing apps on Google's cloud platform. The search giant can argue that its cloud is good enough for critical business workloads. This increases its cloud profits.

Nearly 58 percent of Alphabet's revenue in the first quarter came from search and ads served across search engines, Gmail, and the maps and other online destinations it manages. Google's cloud business generated 7 percent of revenue. But it grew faster. The search giant accounted for 5 percent of the cloud infrastructure market in 2019. While Amazon acquired 45 percent and Microsoft about 18 percent.


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