According to the representative Google, the company can reduce the commission, which it charges to developers of cloud applications, from 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 ", - said a Google employee.
Similar to 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 tech companies are forced to reduce the size of commissions at 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.. The court also decided that Apple will no longer be able to prevent developers from directing users to their own stores bypassing the App Store..
Another tech giant, Microsoft, since July has allowed Windows software developers to use their own stores and pick up 100% proceeds. PC game developers also pay less starting in August: 12% from sales instead of 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 a matter of time before Google’s decision to reduce its 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. Of these, Amazon took 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 unprofitable: operating loss for the quarter amounted to 0.6 billion.