Apple reportedly enters a $1.5 Billion deal with Amazon’s Cloud service

Amazon founder and CEO Jeff Bezos laughs as he talks to the media while touring the new Amazon Spheres during the grand opening at Amazon's Seattle headquarters in Seattle Washington U.S
Apple reportedly spending $30 million a month on Amazon Web Services
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26 April, 2019

According to a filing, more than one billion Apple devices are in use in a month.

In January 2018, Apple announced plans to spend $10 billion on data centres in the United States within five years.

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Media reports quoting people familiar with the matter claim that Apple is spending roughly $30 million every month on AWS, making it one of the services' biggest users.

Apple said previously it has uses AWS for iCloud storage, but has not revealed whether any other Apple services use other third-party clouds or AWS. And that spend will continue into the future: according to the report Apple has signed a multiyear deal with AWS that commits it to spending $1.5 billion over a five-year period, which is a drop in the bucket for Apple but a sizable win for AWS.

If Apple continues to use AWS at those levels for the rest of the year, its annual spending on Amazon's cloud services would exceed $360m.

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Apple is not the only company to make a long term agreement with Amazon for its cloud services as Lyft, Pinterest and Snap have all committed to paying AWS $300m, 750m and $1.1bn respectively for its services over the next few years.

But Apple is hard at work building its own cloud infrastructure, investing billions in new data centers that would increase its ability to deliver internet services without relying as much on frenemies like Amazon or Google. In that light, it's clear that Apple is definitely a major AWS customer, with these figures putting its spending well ahead even of companies that were born in the era of cloud computing.

As the war for cloud share in the tech market is increasing, as every company came with different strategy to grasp its share.

Lyft plans to buy $300 million through 2021. It's become increasingly hard for even giants like Apple to launch and maintain large-scale internet services without the help of dedicated cloud platforms from the likes of Amazon, Microsoft, or Google.

CNBC also reported that Pinterest will purchase more than $750 million in cloud services from Amazon through July 2013.


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