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Apple is spending millions each month on AWS

26 April 2019

CNBC reports Apple has a multiyear agreement with Amazon Web Services, for which Apple pays Amazon $30 million per month.

RBC Capital Markets estimates that AWS leads the cloud computing space with about 50% market share.

As the report notes, Apple has said in the past that it uses Amazon Web Services for iCloud storage, though it hasn't given more specifics or said if it uses the platform for any other objective.

Apple, meanwhile, also is investing in building its own cloud infrastructure.

In addition to its monthly AWS tab, Apple is investing heavily in its own cloud storage infrastructure, In December the Cupertino firm revealed it expects to spend $10 billion over the next five years on USA -based data centers, $4.5 billion by the end of 2019.

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For some time now, Apple's top product - the iPhone - has been experiencing saturation status in the markets because of which the company has begun pointing more to online services as a key contributor. In that light, it's clear that Apple is definitely a major AWS customer, with these figures putting its spending well ahead even of companies that were born in the era of cloud computing. So the firm is capitalizing severely to build out its particular set-up, and to so in January of 2018, Apple stated strategies to use $10 billion on data centers in five years in the US.

Tech giant Apple and Amazon may be rivals but the Cupertino-based company is dependent on Amazon to offer its services to users.

Apple's focus is shifting to software services ranging from Apple Music, iCloud to TV Plus video and News Plus magazine services. That five-year deal seems to indicate that Apple intends to maintain its investment in AWS: If Apple is already spending over $360 million every year, it'll easily surpass the $1.5 billion minimum mandated by that five-year deal.

Lyft plans to buy $300 million through 2021. Pinterest will have spent almost $750 million to Amazon for the cloud services at the end of its six-year contract in 2023.

Apple is spending millions each month on AWS