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Google New Zealand reports a surge in cloud sales

Google New Zealand reports a surge in cloud sales

Google New Zealand's total reseller revenue lifts from $43.8 million to $57.8 million.

Credit: ID 174212743 © Andreistanescu | Dreamstime.com

Google is achieving strong growth in its cloud business locally, for which subsidiary Google NZ is a reseller.

Google NZ reported its cloud reseller revenue surged from $5.5 million to $8.7 million during the year to the end of December 2021. 

Google NZ also resells advertising and marketing services for its US parent. That portion increased from $35.7 million to $43.6 million during the year.

Total New Zealand revenue for the subsidiary increased from $43.8 million to $57.8 million, however, the reseller portions appear to be significantly less than total revenue the corporation earned from Kiwi customers. 

Other numbers in the accounts indicate it may be around 10 per cent of the total sales Google makes locally. Google NZ paid $697.8 million in service fees to related parties during the year, up from $517.1 million in 2020.

Google NZ paid $2.9 million in tax for the year, up from $2.4 million in 2020.

Google was a bit of a late arrival on the New Zealand cloud scene and has yet to join the all of government cloud framework agreement alongside hyperscale rivals AWS and Microsoft among others.

As reported last week, negotiations are under way and Google is expected to join the framework next year.

The company has been winning high profile business locally, picking up marketplace business Trade Me and NZX-listed building products conglomerate Fletcher Building as clients over the last couple of years.

Microsoft and Amazon Web Services, however, are also both building or planning local datacentre regions to address customer concerns about issues such as performance and data sovereignty.

Google NZ has established a local engineering team and a local point of presence.


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Tags Googlemicrosoft azureAmazon Web ServicesAWSGoogle CloudTrade MeFletcher BuildingCloud

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