9to5Mac - Monday, April 22, 2019 at 6:23 AM

Apple now paying Amazon over $30M each month for cloud services, likely to
continue growing
 
While Apple and Amazon are often viewed as competitors, they also share an
important partnership when it comes to cloud services. Amazon Web Services
(AWS) are used to power Apple's services including iCloud and its monthly
payments to the retail giant are now said to be more than $30 million.

Apple and Amazon are often painted as rivals with the competition between
Siri vs. Alexa, HomePod vs. Echo, Apple TV vs. Fire TV, and other services
offered by the companies. But their relationship is more nuanced than that.

As reported by CNBC, Apple spends upwards of $300 million a year securing
cloud services from Amazon. Apple has previously stated that it uses AWS for
iCloud storage, and it's possible it could be relying on Amazon's cloud for
more of its services, especially as the company ramps up offerings like
Apple News+, Apple TV+, Apple Arcade, and more.

CNBC's sources say that as of the end March, Apple is now spending over $30
million a month on AWS, which is up 10% compared to last year. Apple also
recently signed an agreement with Amazon to spend $1.5 billion on its web
services over a five-year period.

The report notes that Apple's AWS spending (over $300 million annually) is
more than other tech companies like Lyft, Pinterest, and Snap.

For the sake of comparison, Lyft has agreed to pay AWS at least $300 million
for cloud services through the end of 2021, while Pinterest said it has
committed to spending at least $750 million on AWS in a six-year period that
ends in mid-2023. That works out to an average of $100 million per year for
Lyft and $125 million per year for Pinterest. Snap has committed to spending
$1.1 billion on AWS through the end of 2022, at least $150 million of that
in 2019.

Along with Apple ramping up its Services efforts, it has 1.4 billion active
devices globally, with more than 900 million of those being iPhones. CNBC
also noted an open position at Apple for a senior engineer that would "Lead
and architect our growing AWS footprint" among other things.
 
Original Article at:
https://9to5mac.com/2019/04/22/icloud-apple-amazon/


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