Looks like the table has turned—Apple is seeking help from its main competitor! Is Apple moving its iCloud services to Google Cloud to finally make peace with Google? Or is there something more behind this collaboration?
Google cannot be happier with this news as it has been gunning larger companies as cloud customers. But who would’ve thought that the biggest company in the world would come knocking at their door? Sources say that the iPhone-maker recently started storing portions of its iCloud and services data with Google’s cloud platform.
However, this is not the first time Apple is asking help from a competitor. It was currently reported that Apple’s iCloud luggage sits with Amazon Web Services (AWS), the leading cloud provider by a long mile, and also with Microsoft’s Azure. CRN, the publication which first reported the news, claims that Apple is trimming its reliance on AWS by turning to Google. At minimum Apple would seem to be adding Google to the mix.
Apple will be spending between $400 and $600 million with their integration with Google, as pegged by CRN. According to re/code, If the CRN report is accurate and the revenue figure refers to an annual rate, that would be significant for Google: The search giant doesn’t disclose its cloud numbers, but some analysts have pegged its total revenue last year were around $500 million.
Unfortunately for Google, this is as good as it gets because little do they know—Apple has something up their sleeves. Apple is not eyeing these partnerships with Google or their other competitors permanently. In fact, this is just a strategy for the phone making giant to start developing their own storage system that will beat Google’s Cloud storage. Morgan Stanley laid out the tea leaves: Apple has announced three data centers opening soon, and spent an estimated $1 billion last year on AWS. It’s a logical move for Apple if it wants more independence from its tech rivals. And Apple should be able to make it store the growing media libraries from its mobile, TV and TBD products.
Apple could be a little sly in collaborating with its competitors, but this just goes to show that this billion dollar corporation does not hesitate to take inconceivable actions to stabilize the growth of their company. Instead, what it looks like is Apple actually helping its rivals make more money and not vice versa.
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