Google Cloud is already making billions by monetising its AI services. CEO Thomas Kurian revealed this at a recent conference, highlighting that their backlog has reached $106 billion and is growing faster than revenue. Over half of this backlog is expected to convert to revenue within the next two years.
The monetisation strategy encompasses several approaches. Consumption-based pricing is one key method, where customers pay for AI infrastructure (GPUs, TPUs, models) based on usage, measured in tokens representing processed text. Another approach involves customer service systems, with pricing based on 'deflection rates' that reflect the business value derived, considering factors like uptime, scalability, AI features and security. Google Cloud provides tools such as a 'deflection dashboard' to help customers manage agent interactions. Subscription models are also utilised, with users paying a monthly fee for services like Gemini products and Google Workspace. Google One offers personal cloud storage subscriptions, and earlier this year, Google introduced 'Google AI Ultra,' a premium subscription offering exclusive access to advanced AI products.
Upselling is another important component of Google Cloud's strategy. As customers utilise Google's AI services, they are often encouraged to upgrade to higher-quality models and higher-priced tiers. This increased usage leads customers to exceed their initial contract commitments, ultimately driving more revenue growth. The company is also experiencing rapid growth in new customer acquisition, with a 28% sequential quarter-over-quarter increase in the first half of the year. Furthermore, a significant portion of their existing customers are already actively using Google Cloud's AI tools, making sales to these customers more efficient.
Artículos relacionados de LaRebelión:
- Pixel 10 Battery Woes Googles Battery Health Assistant is Mandatory and Cant Be Disabled
- Googles Genie 3 AI Creating Real-Time Interactive 3D Game Worlds
- Xiaomi Urges Users to Update Now to Fix Abnormal Issues in HyperOS
Artículo generado mediante LaRebelionBOT
No hay comentarios:
Publicar un comentario