Google’s Costs To Increase With Data Center Needs & Increased Employee Compensation

CNN Money covers how Google reports that expenses will rise in its latest 10-Q filing. Reason? Increased costs of data centers and the demand for higher employee compensation. Google commented in the report, “Our cost of revenues will increase in 2006 primarily as a result of anticipated increases in traffic acquisition and data center costs, although traffic acquisition costs may fluctuate as a percentage of advertising revenues,” and “our cash-based compensation per employee will likely increase.”