Google To Provide Cloud Storage Services To Apple

Apple will avail the cloud storage services offered by Google to cut down costs and reduce its reliance on Amazon and Microsoft Corporation.

In an effort to improve its reputation in the cloud-computation industry, Google has seized a well-known tech company, Apple. In recent times, iPhone manufacturer began to store parts of its services and iCloud data with the cloud platform of the American search company, sources aware of the deal revealed.

It is a victory for the Mountain View based company, which is hunting for bigger companies as its cloud customers. It may be short-lived, as it seems like Apple is also developing its owned system to bring data stored on a large number of its products in-house.

Presently, Amazon Web Services (AWS) store most of the iCloud luggage of Apple. CRN first reported this news and claimed that the Cupertino-based company is cutting down its dependence on AWS by shifting to Google.

Google and Apple have refused to share their views. Amazon, which mostly does not reveal its customer’s identity, gave a statement implying that the company has not defected.

Apple revealed its dependence on Azure and AWS in a paper released in 2014. CRN pegged the spending by the consumer electronics maker with Google between a range of $400 million and $600 million. A source simply said it was a “significant” amount. If the revenue figure refers to an annual rate and the report by CRN is accurate, it would be significant. The search company does not reveal its cloud figures, but some analysts estimated its cumulative revenue in 2015 around half a billion.

For the organization, the agreement might be a measure taken to cut down costs ahead of developing its own cloud storage technology. Its cloud team is in agreement-signing mode, aggressively interested in bringing new customers to use its cloud facilities and might have sweetened the agreement- or been more interested than Azure or AWS to concede to the demands of Apple.

There is a next step taken by the company, as Morgan Stanley noted in February, Apple has announced to open three data centers soon and spend approximately $1 billion in 2015 on AWS for the sake of prosperity. 

It is a sensible move for the organization if it seeks more independence from its technology competitors. A source aware of the matter revealed that Google’s team is currently working on it; it is internally called “McQueen,” as in Steve. It is not clear if that venture will materialize or when, but this can benefit the business considerably.