Amazon chose to contest the widely circulating report that Apple has cut down on its reliance on Amazon Web Services in favor of competing Google’s Cloud Platform.
“It’s kind of a puzzler to us because vendors who understand doing business with enterprises respect NDAs with their customers and don’t imply competitive defection where it doesn’t exist,” revealed Amazon in a statement released to TechCrunch.
Word doing the rounds in the tech circle so far has been claiming a huge success for Google in weaning away Apple to shift part of its iCloud and services data to Google’s cloud infrastructure. Google’s cloud platform powered by its data center technology has so far been playing sort of second fiddle to the likes of AWS or Microsoft’s Azure.
Morgan Stanley analyst Brian Nowak recently estimated Apple pays about a billion dollar a year to Amazon for using its cloud infrastructure. Worth mentioning, Amazon has lost two high-profile clients, Dropbox, and Spotify in recent times. Of the two, while Spotify has shifted to Google, Dropbox has begun operating out of its own data center.
Google has been aggressively pushing adoption of its cloud platform claiming a cost benefit to the tune of 15 to 41 percent in the process over competing platforms. The California-based search giant is keen to shrug off its status as a distant third player behind Amazon and Microsoft.
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While Apple and Google have been maintaining a studied silence on the issue so far, analysts claimed the move could have been an attempt on the part of Apple to diversify its cloud services to another platform instead of having a heavy reliance on Amazon’s cloud setup.
The deal was estimated to have been worth anywhere between $400 million to $600 and was being considered to be a huge coup of sorts on the part of Diane Greene, Google’s newly appointed head of its cloud business.
In any case, Apple already is in the process of developing world-class data centers in Ireland, Denmark, Reno, and Arizona besides expanding the scope of its existing data center in Prineville, Oregon. Apple had earlier stated its investment in Arizona is among the largest it has made and will serve as the command center for its global data network.