In its quarterly report, Alphabet reported that Google Cloud generated revenue of $8.031 billion for the quarter, up 28% compared to $6.276 billion a year ago.
The company also noted that it has completed an assessment of the useful lives of its servers and network equipment and adjusted the estimated useful life of this equipment from four years to six years and the estimated useful life of certain network equipment from five years to six years. This change in accounting estimate was effective beginning in fiscal year 2023, and the effect was a reduction in depreciation expense of $966 million and $2.0 billion and an increase in net income of $752 million and $1.5 billion, or $0.06 and $0.12 per basic and $0.06 and $0.12 per diluted share for the three and six months ended June 30, 2023, respectively.
