Google Competes with Amazon and Apple on Infrastructure Spending

May 1, 2013

According to the article titled Google’s Infrastructure Spending Spree Continues; $1.2B in Q1 on GIGAOM, Google has almost doubled its spending from last year’s first quarter. It continues spending on property and equipment, and to maintain efficiency. Apple and Amazon have not released their earnings report as of yet, although in the previous quarter each company spent over 2 billion. The article explains,

Apples-to-apples comparisons can be tough, because everyone’s businesses are different and decisions to build or buy new gear can affect expenditures, as can massive new headquarters. But here goes: In its fiscal third quarter earnings announced on Thursday, Microsoft claims it spent $930 million. Facebook, Apple and Amazon have not yet released their latest earnings, although both Apple and Amazon spent more than $2 billion on “property and equipment” in the previous quarter. Facebook spent $198 million and another $89 million leasing property and equipment.”

Apple especially has drawn attention for its new headquarters, reportedly nearing 3 billion dollars over budget due to extravagances like 15 acres of trees and cast ceiling molds that will be lifted into place, according to this article, Apple’s Massive Jobs-designed Future Headquarters projects is $2B Over Budget. Microsoft’s spending sound meager in comparison at 930 million. Google’s huge investment in infrastructure makes us wonder, will the company with the biggest computer win the revenue wars?

Chelsea Kerwin, May 01, 2013

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