2 Reasons Why Google's Cloud Business Can Outperform

Alphabet (NASDAQ: GOOGL) seems like it should naturally lead in cloud business -- but somehow the opportunity slipped away. Alphabet's cloud business lost the initial cloud wars and now has significantly less heft today than Amazon's AWS and Microsoft's Azure. As a result, many investors feel that Alphabet has lost the ability to build a significant cloud business. However, here are three reasons Google's cloud business can outperform and eventually achieve profitability. 

Contrary to popular belief, Google was not late to the cloud business -- it had developed a cloud business relatively early. Google launched Google App Engine (GAE) in 2008, only two years after Amazon developed Amazon Web Services (AWS). Some people even considered GAE technically superior to AWS. Yet AWS won the initial battles for market share. And maybe the most significant reason that GAE lost to AWS was that many developers didn't feel Alphabet was committed to building a cloud business.

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Source Fool.com