Apple rents space in the cloud server of Google
It is reported that Apple decides to relocate some of its iCloud services onto the Google Cloud. However, this business relationship is predicted to be short-lived because Apple is still working on their own cloud server.
So far, Apple has not stopped entirely using Amazon's cloud computing services. However, they still decide to sign up with Google as a customer to rent more space. Since 2011, Apple has been using Amazon Web Services (AWS) as well as Microsoft's cloud, Azure. And it may take sometimes, maybe a year for Apple to officially become Google's client.
Currently, Amazon is the market leader in the US in the field of a cloud server. And based on various analysts, Apple has been spending about $1 billion a year on AWS. Analysts at Morgan Stanley added this amount is making up about a tenth of AWS's revenues. After Microsoft Azure, Google has been a distant third in its race for market share in cloud computing.
Apple is reportedly a major customer at Google, thanks to Diane Greene
Apple - one of the best US technology group from California and Google - the world's most popular search engine will soon have a big contract. It can be a result of an ongoing pricing war between Google and Amazon.
When the deal is successfully made, it will take a year for Apple to transition to using Google Cloud Platform
Cloud computing means that internet users to store their information and data on a server, without any of those physical memory sticks or hard drives. Experts see a bright future is in the Cloud. Cloud computing gives IT is foreseen with a tremendous profit growth. Even Urs Hölzle - Google's cloud executive says that "by 2020, Google could be making more money from cloud-computing services than it does from advertising."
Just in the February 2016, Google also gets a successful deal with Spotify - a famous music streaming service. It announced the shifting from Amazon Web Services and most of its services will be stored on the Google Cloud platform. Meanwhile, Dropbox is also engaged as a loyal client from Amazon's cloud, reported by Wired. With this situation, Google may need to work harder to lift up their position in cloud computing market share.
Google executives shared that Apple is going to spend between $400 million and $600 million on Google Cloud Platform. This is not yet confirmed by Apple and remain unclear that whether it is an annual spending rate or a set amount of capacity.