Cloud Wars CEO of the Year Is Google Cloud's Thomas Kurian | Cloud Wars Live

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9d ago 39:26

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Google Cloud's Innovation and Growth

The Big Themes:

Google Cloud's record growth and market positioning: In 2024, Google Cloud experienced five consecutive quarters of accelerating growth, including a remarkable 35% growth in Q3, up from 29% in Q2. Kurian attributes this success to the company’s ability to listen to customers, innovate with products that meet their evolving needs, and strategically invest in a strong go-to-market organization.
AI cost reduction and efficiency: Kurian comments on Google Cloud's efforts to significantly reduce the cost of AI models. Through improved software stack capabilities and optimizations, Google has decreased the cost of AI by more than 10x in just six months. Reducing latency, improving response accuracy, and utilizing distillation (e.g., making models run on smaller devices like phones) have contributed to lowering operational costs while increasing model efficiency. This approach has resulted in a 15-17x growth in model usage in just five months.
The evolving role of cloud in business transformation: Kurian notes a fundamental shift in how businesses view cloud computing. Initially seen as a way to reduce costs, cloud is now seen as a tool for driving business transformation. AI, analytics, and security capabilities are helping organizations speed up decision-making, optimize logistics, and gain competitive advantages. Kurian believes that the next wave of cloud adoption will focus more on enabling new business models, products, and markets rather than just reducing IT costs.

The Big Quote: “We tend to look ahead by listening to customers and understanding their needs, and create in a disciplined way, new product offerings. If you look a the last five years, we've introduced enough steady cadence. First, we started with infrastructure, then we added databases to it. We used our strength with BigQuery to build out an analytics portfolio. We were one of the earliest to say . . . we should not only provide [customers] a secure cloud, but we should also build a security product portfolio. Every one of those has driven diversification of our revenue stream."

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