Apple Reportedly Moving Part of Cloud Biz from AWS to Google

Tech giant Apple will reportedly run parts of its iCloud backup service on the Google Cloud Platform instead of the Amazon Web Services (AWS) platform.

The move is a clear victory for Alphabet, the Google parent company that owns the cloud service, which came under new leadership last year. The reported cost to Apple for Google?EU?s services is said to be between $400 million and $600 million. However, it is not clear whether this range refers to spending per year or for a set amount of capacity.

Desire To Diversify

Apple initially signed a deal with Google late last year and has spent the ensuing months dialing down how much it relies on the AWS infrastructure to run parts of iCloud and other services. Although Google has been lagging behind Amazon and Microsoft?EU?s Azure in the cloud computing market, it has gained ground since Diane Greene was named head of Google's cloud business in November.

However, it appears that Greene has lots of ground to make up. Only 6 percent of cloud users employ Google?EU?s cloud infrastructure, while 17 percent use Microsoft and 57 percent use Amazon, according to a recent survey by cloud management provider RightScale.

The move to the Google Cloud Platform likely reflects a desire by Apple to diversify its Internet services. iCloud, which offers customer backup storage for photos, music, videos and other files, is one of those services. Apple is likely to operate more of these services internally in the coming years, at the expense of AWS. Some analysts have estimated that Apple has spent more than $1 billion a year on the AWS services.

Apple has already said it plans to build three new data centers over the next two years, which would bring the number of Apple data centers to seven.

One such facility, being promoted by Apple...

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