Google makes a lot of money with advertisment. Basically all their earnings. I suppose you all had this experience already: You search something via Google, e.g. some product and a little later, on some other website, you suddenly get offers for this very product sold by some company you haven't visited its website before. That's what Google sells: Personalized advertisment according to what you seek for, where you are (Google maps) etc.
I find this scary somehow, because Google therefore needs to:
1) Know who you are (some tracking ID I guess)
2) Where you browse the web (Google search, Google Chrome)
3) Where you are located and what places you did look for (Google maps)
I could just not use Google's tools and services but I must admit: They are really good at what they are doing. Google is a great software company when you compare it to Microsoft for instance.
Regarding the cloud business: I remember a report, think it was in the Economist, where they stated that actually Amazon is a bigger cloud service provider than Google. The biggest in the world, actually. They simply offer server capacity for rent at a very cheap price. I suppose Amazon is Intel's biggest customer when it comes to server processors. Google is also at the top, just as Microsoft. The problem is, that less servers are sold to companies and you have a lot of synergies on centralized server farms, e.g. by virtual machines etc. That means that capacity is going away from single machines on corporate level to global server farms with shared resources - less server processors required for this.
I think it is simply the general growth of data at private and corporate level that made Intel's server business grow nevertheless. Some price pressure may occur, once competitors, e.g. with ARM based solutions, can offer cheaper solutions at equal performance. There is still some way to go, but I would call it possible. Investing a lot into porting Linux software from x86 to ARM is not much of an issue for the big ones like Amazon or Google.
