Apple Reportedly Signs Deal to Use Google’s Cloud Platform for Some iCloud Services
Apple will reportedly switch to Google Cloud Platform to serve a portion of iCloud’s data needs, a shift that would be a major notch in Google’s belt as the company builds out its cloud product.
The potential shift was reported to Twitter on Wednesday by The Information’s Amir Efrati, who said Apple’s move to Google Cloud could take a year and, like the current Apple tie up with Amazon Web Services, is unlikely to be a money maker for the Internet search giant.
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
Alongside its own iCloud data centers, Apple relies on key third-party providers in servicing a worldwide customer base of more than 782 million users.
A report from CRN claims Apple has already signed a deal with Google worth somewhere between $400 million and $600 million. Neither Apple nor Google have released any official statements regarding the deal.
While mere speculation, Apple could be looking for temporary solution as it weens off AWS. The company currently has plans to build three data centers scheduled to open over the next two years, including a $2 billion “global command center” located at the failed sapphire production plant in Mesa, Ariz. Two more facilities are slated to open in Ireland and Denmark for European customers.
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. Amazon’s AWS, which just celebrated its 10-year anniversary, has grown to become the largest player in the cloud industry.