Apple iCloud to be partially powered by Google's Cloud platform: Report

Apple’s iCloud will soon be partially powered by the Google Cloud Platform, according to sources familiar with the deal. According to a report by CRN, citing sources related to the matter, Apple will be paying Google between $400 million and $600 million for the deal. Currently, Apple’s cloud business is powered by Amazon Web Services (AWS) and Microsoft Azure. This does not imply that Apple has totally abandoned AWS, but is still a customer. “It’s kind of a puzzler to us because vendors who understand doing business with enterprises respect [non-disclosure agreements] with their customers and don’t imply competitive defection where it doesn’t exist,” said an AWS spokeswoman. If the reported news is accurate, this could be a win for Google! However, for Apple the deal might portend a move to cut costs ahead of creating its own cloud storage system, Re/Code pointed out. Apple currently spends around $1 billion annually on AWS, but is speculated to reduce that figure by moving more computing to its own data centers. As of now, Apple is spending $3.9 billion to build new data centers in Arizona, Ireland and Denmark, the first of which is set to open later this year.