Apple has moved some of its iCloud and services data from Amazon Web Services to Google’s cloud platform, in what is seen as a bid by the iPhone maker to diversify its cloud service providers, according to reports.
The move comes even as the company is building its own new data centres, leading to speculation whether the shift is only temporary.
Google is a rival of Apple in smartphones and other devices, but such deals are common among tech companies in areas in which they don’t compete.
Google, AWS and Apple could not be immediately reached for comment.
Apple is setting up a data ‘command centre’ in Mesa, Arizona. It also plans to have data centres in Ireland and Denmark that are expected to go into operation in 2017, and will power Apple’s online services including the iTunes Store, App Store, iMessage, Maps and Siri for customers across Europe.
Last month, Morgan Stanley analysts Katy Huberty and Brian Nowak said that the new data centre rollout suggested that Apple planned to move in-house some of the cloud services business that currently goes to AWS. The Morgan Stanley analysts estimated that Apple spends over US$1 billion annually on AWS services, assuming that 90 percent of its cloud business goes to the Amazon.com unit.
It is not clear though whether the business Apple is shifting from AWS to Google is in addition to the business it plans to move in-house.
News site Re/code added a new twist to Apple’s strategy on data centres, claiming that Apple has set up a team, called McQueen, with the aim of breaking its reliance on outside cloud providers, while it focuses on building its own infrastructure. The thinking within the company is that instead of paying charges to the cloud providers, Apple can break even with its own data centres in about three years, Re/code said, quoting sources familiar withe matter.
Apple is also known to also use services from Microsoft Azure. For Google, the Apple business could help as it competes with leading players like AWS and Microsoft Azure in the cloud business.