Last week, Google faced a big problem, as its commercial and personal services suddenly stopped working, and the discontinued services included Gmail, YouTube, Google Drive, Google Docs, Google Meet, Adwords, and Adsense.
It also came to the cessation of some features of the Android operating system to stop working, as users of Android phones could not use applications such as: Google Photos and Google Maps on their phones.
The outages lasted only 50 minutes, but caused a sensation online, highlighting the extent to which we rely almost completely on the services of a single company, whether in personal or professional life. Google quickly apologized to customers whose services or businesses were affected during this incident, and promised to conduct an investigation.
What is the reason behind stopping Google services:
Last Friday, the company revealed the reason for the discontinuation of its services, which was the work the company had done to move to the User ID service, which deals with authentication of login data for accounts. The problem arose in October when the company switched to a new system for allocating system resources, while leaving parts of the old system in place.
The core of the problem was due to the downgrading of Google’s central identity management system, which resulted in blocking any service that required users to log in.
How much loss is expected?
Google succeeded in keeping the search engine – the largest source of ad revenue – in operation during the downtime that affected most of its services, but YouTube was affected, resulting in Google losing millions of dollars in advertising revenue.
YouTube ads generated huge profits of $ 15.15 billion over the course of 2019, according to the earnings report of Alphabet Inc. – the parent company of Google – during 2019.
Based on these numbers; The average daily ad revenue from YouTube is $ 41.50 million, and up to $ 1.73 million per hour, the approximate length of time Google’s services stop working.
But these estimates are according to last year’s revenue, while YouTube’s profits are expected to grow by 30 to 40% this year, and based on the advertising revenue announced by the company for the third quarter of this year, and these growth forecasts, Google’s losses can be estimated due to the suspension of its services. At about $ 2.3 million.
But the service interruption did not stop on YouTube, but also affected many other services, including free, such as: Gmail, or the subscription-based, such as: Google Workspace. So Google’s losses may be much greater.
All of this did not take into account the intangible losses that the company may incur as a result of the service interruption, and it fears companies and users from relying entirely on the services of one company to run their business, so will companies and consumers seek to diversify as much as possible, or even turn into a competitor?