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Apple’s spending on Amazon would be decreasing, not increasing

Apple's spending on Amazon would be decreasing, not increasing

Earlier in the week, we commented here on news from CNBC that Apple had passed on to one of its competitors, Amazon, more than $ 30 million per month throughout 2018 because of its cloud infrastructure – and that, even with Apple’s investments in data centers that figure had a tendency to rise in the coming years. Today, another vehicle came to challenge that prediction.

According to The Information, the information that Apple spent about $ 370 million with Amazon – more precisely, with the Amazon Web Services (AWS) – is correct. Inaccurate would be the assertion that the value goes up every year: according to the website, in 2017 the payment of the Apple to the retailer was around US $ 775 million; spending last year, therefore, would have fallen by more than 50% and is expected to retract further in the coming years.

The report goes further, stating that Apple has every interest in cutting dependence on other companies as soon as possible for matters related to data centers, servers and cloud. There is even an internal project called “McQueen” focused exactly on this objective: making sure that its services (such as the App Store, iCloud, Apple Music and Apple Pay) are fully maintained by data centers of the company itself, without depending on the structure of partners such as Amazon and Google.

The investments disclosed by Apple in the segment are certainly an indication that the project is following. It remains to be seen when (and if) the company will be able to reach a point where it can afford to run its services to more than 1 billion customers in its own structure alone.

via 9to5Mac