Google Spends On IT - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile // Mobile Applications
Commentary
4/4/2005
06:16 PM
Thomas Claburn
Thomas Claburn
Commentary
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Google Spends On IT

Google is upping its IT ante. In its latest financial filing, the company anticipates it will "spend over $500 million on property and equipment, including information technology infrastructure, to manage [its] operations during 2005," assuming suitable property and equipment are available. That's significantly more than the $176.8 million the company spent on capital ex

Google is upping its IT ante. In its latest financial filing, the company anticipates it will "spend over $500 million on property and equipment, including information technology infrastructure, to manage [its] operations during 2005," assuming suitable property and equipment are available.

That's significantly more than the $176.8 million the company spent on capital expenditures in 2003 and the $319.0 million it spent in 2004.In a recent report, the Susquehanna Financial Group says one area of investment will be storage, to accommodate the company's growing commitment to users of its free Gmail service.

The report notes that Google is trying to widen its lead over competitors, who will now have to decide whether they are underinvesting.

Yahoo certainly seems to be. Its capital expenditures totaled $52 million, $117 million, and $246 million in 2002, 2003, and 2004, respectively. The company's most recent 10-K points to increased IT spending in 2005, though it doesn't offer an estimate. It's difficult to say how much Yahoo will have to spend to keep up, but with Google's 2005 estimate running twice what Yahoo spent in 2004, it seems likely that someone at Yahoo is going to be writing a lot more checks.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
Slideshows
Flash Poll