Google is beginning to look beyond search to tap into some of the most lucrative and promising businesses in the tech industry: artificial intelligence and cloud computing. The company, the largest and most significant part of Alphabet Inc., has grown to mammoth proportions off the back of its search-based advertising division. But those revenues are starting to slow. The cloud allows companies to manage and sell server space and software that lives inside its data centers, like AI, to other large companies. That type of service-based business is fast becoming the new way to reap profits in the tech industry.
Google is, effectively, a monoculture, and that’s a huge sticking point for the company’s future. The company’s surely got a number of endeavours that could prove hugely profitable in the future (e.g. its driverless car technology), but that’s still a considerable number of years in the future.
For a company with what is probably the biggest server infrastructure in the world, it seems like a logical place to look.