Apple has inked a five-year, $1.5B cloud contract with AWS
- Author: Anthony Vega Apr 26, 2019,
Apr 26, 2019, 0:29
That is $10 million more than past year, according to a report from CNBC. So the firm is capitalizing severely to build out its particular set-up, and to so in January of 2018, Apple stated strategies to use $10 billion on data centers in five years in the US.
In its determination to expand its online services like iCloud, Apple is reported to have spent over $30 million (roughly Rs. 210 crores) a month on Amazon's Cloud services in the first quarter (Q1) of 2019.
Despite all this, Apple now spends more than $30m a month with AWS, people familiar with the matter told CNBC - more than any other publicly announced customer.
Apple has used AWS for iCloud storage in the past but has not publicly said if any of its other services also use AWS or other cloud providers.
As far as Apple's business with Amazon is concerned, the interesting point is that the expanding business association is in spite of their competition in many areas.
Apple seems to buying cloud services through same type of expansive, long-term contract that AWS usually signs with big enterprise customers. Pinterest will have spent almost $750 million to Amazon for the cloud services at the end of its six-year contract in 2023.
Amazon competes with Apple in the mobile device market with its Kindle Fire tablets, and in voice-activated personal assistants with Alexa. The iPhone maker pays as much as $30 million every month to Amazon's cloud services comapny, Amazon Web Services (AWS), as per a CNBC report.
Apple isn't only using Amazon's AWS, though.
If Apple's continue the same spending rate for AWS for the rest of 2019, its yearly costs would surpass $360 million.
For Amazon, AWS offers an average of 11 percent of the total annual revenue, and 59 percent of the parent company's operating income.
The reported figures indicate Apple's use of AWS services is steadily growing. In 2018, AWS posted $25.66 billion in revenue.