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Apple Is Biggest Amazon Web Services Customer, Spends $30 Mn Per Month

Pritish raj by Pritish raj
September 30, 2019
in Internet, Tech
3 min read
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Amazon Web Services- Next Big Brand

Amazon Web Services- Next Big Brand

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  • Amazon Web Services is a significant component of the company of Amazon.
  • Apple said it was looking for someone in a February work posting that could “guide and architect our increasing AWS footprint.” Indeed, spending is on track to grow.

As Apple and Amazon compete for a larger share of customer dollars and attention, they also have their own business connection and that is the services of Amazon’s Cloud on which Apple spends more than $30 million a month.

Apple’s cloud spending represents the determination of the company to deliver rapidly and reliably online services such as iCloud, even if it has to rely on a competitor to do so.

As Apple’s top product, iPhone, approaches market saturation, the business has started to point more as the main contributor to internet services. The firm has recently stopped disclosing unit sales for iPhones and other hardware products and has begun disclosing the profit margin for its services business, including the iOS App Store, AppleCare, Apple Pay and iCloud. Last month, Apple also introduced fresh video and magazine subscription services.
Every month, people use more than 1 billion Apple devices, and Apple has significant computing and storage demands accordingly. The business is investing strongly in the construction of its facilities: Apple announced plans in January 2018 to spend $10 billion in five years on data centers in the U.S. Apple said it would spend $4.5 billion of that sum by 2019 in December. The business also relies on smaller cloud suppliers from third parties. But it also depends on the major cloud suppliers, including the Google subsidiary of Amazon Web Services and Alphabet. In the past, Microsoft also supplied Apple with cloud instruments.
In the past, the firm has said it utilizes AWS for iCloud storage but has not revealed whether any other Apple services are using AWS or other third-party applications.

Apple said it was looking for someone in a February work posting that could “guide and architect our increasing AWS footprint.” Indeed, spending is on track to grow.

At the end of March, Apple’s expenditure in the first quarter of 2019 was on track to average over $30 million per month. According to two individuals familiar with the expenditure, that would be more than 10 percent greater than a year ago.

Amazon Web Services- Next Big Brand
Amazon Web Services- Next Big Brand

If Apple’s use of AWS for the remainder of 2019 remains at those rates, its annual expenditure would exceed $360 million. Apple spent about $350 million in 2018, said one of those individuals.

It is probable that spending will proceed in the foreseeable future. Apple has signed an agreement over the previous few months that involves an undertaking to spend at least $1.5 billion over five years on AWS, a source said. Apple had $30.94 billion in operating expenses in the latest fiscal year.

Amazon Web Services is a significant component of the company of Amazon.

AWS would collect more income from Apple at these prices than from several other businesses, including Adobe, Capital One, Intuit, Lyft, and Pinterest, based on government filings and a report in The Information.

Amazon has a growing quantity of cash invested by clients to use services in the future, mainly linked to AWS. At the end of 2018, obligations for agreements with initial terms were worth $19.3 billion, which last longer than a year, Amazon said in a filing.

Tags: Amazon CloudAppleAWS
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Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career. Highly enthusiastic about brands and startups, he aims to be a travel content creator.

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