Alphabet’s Google has landed a big customer in its campaign to become an enterprise cloud computing powerhouse, making Apple a customer for the Google Cloud Platform, CRN reports.
According to the sources, Google executives have told partners that Apple is spending between $400 million and $600 million on Google Cloud Platform, although this couldn’t be independently confirmed. Also unclear is whether this range refers to an annual spending rate or a set amount of capacity.
An AWS (Amazon Web Services) spokeswoman cast doubt on these figures in an emailed statement sent to CRN late Wednesday.
“It’s kind of a puzzler to us because vendors who understand doing business with enterprises respect [non-disclosure agreements] with their customers and don’t imply competitive defection where it doesn’t exist,” said the AWS spokeswoman.
Since inking the Google deal late last year, Apple has also significantly reduced its reliance on Amazon Web Services, whose infrastructure it uses to run parts of iCloud and other services, said the sources, who all requested anonymity to protect their relationships with the vendors.
Google’s extensive fiber network linking its data centers is said to be a major competitive advantage when it comes to networking bandwidth costs. Cheaper networking would present significant savings for Apple data services like iCloud, iTunes and App Store, which must either push content to customers or shuttle massive amounts of backup data to the provider.