Google Cloud India’s growth has been a laggard for its stellar global show

Google Cloud, the world’s third-largest cloud service provider behind Amazon Web Services (AWS) and Microsoft Azure, saw its Indian operations hit a speed bump with revenue growth skidding to single digits even as globally it has been a showstopper for parent Alphabet.

The Indian unit of Google Cloud reported revenue of ₹1,963.4 crore for the year ended March 2024, up 9.5% from the previous year. This came after its revenue had almost doubled in FY23. 

Indeed, Google Cloud’s performance in India was in sharp contrast to its global business that grew 26% in 2023 to $33 billion. Google’s top rival AWS also saw its revenue growth slow down but it retained a double-digit growth profile in FY24.

Google Cloud did not respond to queries around its performance in India.

Google Cloud includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. It generates revenues primarily from consumption-based fees and subscriptions received for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.

In India, Google Cloud surpassed $100 million in revenue during FY21, as per data from VCCEdge, a research platform affiliated with TechCircle. The growth rate skid in the second year under the pandemic though it stayed in double digit.

This was followed by a sharp jump in FY23. Net profit that had shot up 2.4-fold that year also barely managed to grow with 6% rise in FY24.

Google Cloud India has a diverse client base across industries like banking, financial services and insurance (BFSI), retail, manufacturing, telecommunications, and startups. Some of its clients include HDFC, ICICI, the Federal Bank, Flipkart, and Reliance Group. In an interview with a national news channel last year, CEO Thomas Kurian said that the company’s customer base is expanding, with increased investment in Artificial Intelligence (AI), analytics, and cybersecurity contributing to this growth. Within APAC, India is the fastest-growing region for the company.

Currently, the company has two cloud regions in the country – in Mumbai and Delhi-NCR. The latest cloud region in Delhi-NCR was established in 2021 amid growth in demand for capacity building, disaster recovery solutions, and low latency.

In October, Google launched ‘DPI in a box’, a comprehensive suite for identity storage, management, and access. Built on the Google Cloud platform, this solution aims to export DPI globally and allow for easy integration. It will help other nations to implement Aadhaar-like frameworks using a standardised tech stack.
 
Early this year, Airtel partnered Google Cloud to develop and deliver cloud and generative AI products to Indian companies.