Apple Is Prime AWS Customers Spends Heavily Every Month
- Author: Darren Santiago Apr 26, 2019,
Apr 26, 2019, 0:28
This is up from $350 million it spent in 2018.
However, Apple is also building up own data center capacity: In January 2018, Apple earmarked a budget of $10 billion for data centers in the USA with half the amount going to be spent in 2019.
The deal reflects the iPhone maker's increased reliance on Amazon's cloud: According to the report, Apple spent an average of over $30 million on AWS every month during the first quarter of this year - a gain of more than 10% from the same period in 2018, the report says.
Despite all this, Apple now spends more than $30m a month with AWS, people familiar with the matter told CNBC - more than any other publicly announced customer.
Visit Business Insider's homepage for more stories. Pinterest will have spent almost $750 million to Amazon for the cloud services at the end of its six-year contract in 2023.
Those familiar with the matter also said Apple in recent months signed an agreement to spend at least $1.5 billion on AWS over the next five years. Microsoft and Google have also been known to provide cloud services for Apple.
According to analysts, Apple's ongoing transformation into a service provider and entertainment giant will amplify the cloud expenditure.
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Apple isn't only using Amazon's AWS, though.
Apple's focus is shifting to software services ranging from Apple Music, iCloud to TV Plus video and News Plus magazine services.
This is an example of coopetition between the two - they work together even though the two companies offer rival products.
One has to think that Apple's spending on AWS won't continue indefinitely as the company traditionally doesn't like to put all of its eggs in one basket.
There are customers such as Adobe, Capital One, Intuit, Lyft, and Pinterest paying hefty amounts to AWS.
And Pinterest, which also uses only AWS, has a six-year deal with AWS that requires it to spend at least $750 million on cloud infrastructure services through July 2023, according to its S-1 regulatory filing. In 2018, AWS posted $25.66 billion in revenue.