What is actual Google Cloud Platform Revenue, not including Workspace?
Like a number of cloud computing providers, Google includes revenue in their official financial reporting that doesn’t fall into our definition of the cloud computing space. In Google’s case, the primary exception is Workspace, the productivity suite that includes GMail, Google Docs, and so on. Workspace is reported as part of Google Cloud revenue, making it a little harder to track the performance of the specific Google Cloud Platform portion of the business. As part of our work tracking the space, Cloud Industry Data backs out non-cloud-computing revenue in order to provide cleaner revenue, market share, and profitability numbers to support clearer business insights on cloud computing.
For 2022, we estimate that Google had 18% market share in the personal productivity suite space, with Microsoft accounting for most of the rest. That comes out to about $3.3 billion in Workspace revenue. Net of Workspace, GCP revenue was about $23.0 billion for 2022, not the reported $26.3 billion.
While the more accurate revenue number is a bit smaller than the reported one, it also obscures a higher than reported growth rate. GCP actually grew 40.3% from 2021 to 2022, about 2% faster year over year than the official numbers.