Apple has signed a deal with Google that will see the Google Cloud Platform providing some of the cloud infrastructure for iCloud and other cloud-based Apple services, reports CRN (via Business Insider). Apple reportedly established a $400 to $600 million deal with Google last last year and has, as a result, “significantly” cut down on its reliance on Amazon Web Services (AWS).
According to the sources, Google executives have told partners that Apple is spending between $400 million and $600 million on Google Cloud Platform, although this couldn’t be independently confirmed. Also unclear is whether this range refers to an annual spending rate or a set amount of capacity.
While the money Apple is now paying Google was previously spent on AWS, Apple has not stopped using Amazon’s cloud computing services entirely. Apple has never confirmed the cloud services that power iCloud, but past rumors have pointed towards AWS and Microsoft Azure, suggesting Apple will continue using multiple services to meet its needs.
According to The Information‘s Amir Efrati, who has confirmed Apple’s plans, it will take a year for Apple to transition to using Google Cloud Platform.
It’s true, @iCloud to be partially powered by @googlecloud. But will take a year & unlikely to be profitable. @awscloud lost $ from iCloud.
— Amir Efrati (@amir) March 16, 2016
Since last year, Google has been aggressively pursuing deals for its Google Cloud Platform, led by former VMware CEO Diane Greene. Google and Amazon have been involved in ongoing pricing wars, but Google claims to be the “price/performance leader” in public cloud and says its Google Cloud Platform is between 15 and 41 percent less expensive than AWS.
In the future, Apple may scale back on the money it spends on third-party cloud computing platforms, based on its data center plans. Apple is building new data centers in Ireland, Denmark, Reno, and Arizona, plus it is expanding its existing data center in Prineville, Oregon.
In Arizona, Apple’s data center will be located at the former GT Advanced sapphire plant and has been described as a “command center” for Apple’s global data network. Apple says the Arizona location is “one of the largest investments” the company has made.
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Source: MAC ROUMORS