According to the representative Google, the company can reduce the commission, charged from cloud application developers, with 20 to 3%.
“Our goal is to offer partners the best platform in the industry. Changes in terms of commission fees on our site are under development, and we will tell you more about it soon", Google employee said.
By analogy with mobile applications, developers can host their cloud solutions on the Google Cloud Marketplace platform. Companies enter into an agreement with Google and pay a certain percentage of sales.
Due to pressure from regulators and high competition, large technology companies are forced to reduce the size of commissions on their sites.
So, in July, Google lowered its commission from 30 to 15% for mobile app developers, who earn less than a million dollars a year on Google Play. Apple did the same earlier.. Apple will also no longer be able to prevent developers from directing users to their own stores bypassing the App Store by a court decision..
Another tech giant, Microsoft, since July has allowed Windows software developers to use their own stores and pick up 100% proceeds. Starting in August, PC game developers also started paying less: 12% from sales instead 30%.
Microsoft recently slashed transaction fees on its Azure cloud platform from 20 to 3%. Cloud services market leader Amazon charges a commission in 5%, according to UBS estimates. So it's only a matter of time before Google's decision to reduce Cloud Marketplace fees.
Reducing commissions, companies are deprived of a high-margin source of income. It's necessary, to retain old customers and attract new ones, after all, the cloud services market is still growing at double-digit rates.
According to Canalys, in the second quarter of 2021, companies' spending on cloud infrastructure increased by 36%, up to 47 billion dollars. Of these, Amazon took away 31%, Microsoft — 22%, Google — 8%.
According to Alphabet report, parent company Google, in the last quarter, revenue in the Google Cloud segment grew by 53%, up to $4.6 billion. Google's cloud business is growing faster than the industry, but still profitable: operating loss for the quarter amounted to 0.6 billion.
