Google's Q1 2013 earnings included clues about its Google Apps cloud business, which is catching on with larger enterprises.
Nearly 60 percent of Fortune 500 enterprises are using at least one Google (NASDAQ:GOOG) cloud service, according to Senior VP and Chief Business Officer Nikesh Arora. That relevation, delivered today during Google's earnings call, arrived around the same time that Microsoft (NASDAQ:MSFT) said Office 365 has achieved a $1 billion annual revenue run rate.
Translation: It sounds like both Microsoft and Google are winning their share of cloud business from large and small customers.
Accordng to Google's Arora, "the enterprise business continues to experience strong growth, across pretty much all products, regions and industries. While our SMB segment is growing steadily, we're seeing significant increase from large global organizations, in fact 58% or the Fortune 500 are now actively using abate enterprise cloud product from Google."
Arora said recent wins include Japan's ANA (a large airline), Australia's largest retailer and BMW. Plus, the country of Malaysia is deploying Google Apps for 10 million students, teachers and parents. "They are going to deploy Chromebooks to primary and secondary schools nationwide," said Arora.
Although Google does not specifically discuss Google Apps revenues, the company delivered another strong overall quarter ended March 31, 2013. Revenues rose 31 percent to $13.97 billion.