Apple reportedly enters a $1.5 Billion deal with Amazon's Cloud service

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Apple is set to become one of Amazon’s biggest customers with a new reported $1.5 billion, 5-year deal with the online retailer’s cloud services, according to CNBC. Apple has already been using both AWS and Google for it’s iCloud storage, and now it seems the iPhone maker is doubling up on its commitment to the former.

Apple reportedly spent about $350 million on Amazon’s Web Services in 2018, and that amount is expected to increase by at least another $10 million this year. Apple has already spent an average of $30 million per month for the first quarter of 2019, up 10% from the same amount it spent this time last year. And while this commitment is great to see on Apple’s part, putting the necessary provisions in place to avoid those iCloud outages that it has been plagued with, the company in December did state that it plans on investing $10 billion on its own data center infrastructure by building more data centers all around the country in the same 5 year time frame.

The deal between Apple and Amazon is just another example of how competitors still need to rely on one another for services. While not exactly competitors, Apple and Qualcomm finally settled their differences when a federal case set for trail was surprisingly settled, with Apple agreeing to pay Qualcomm and enter into a new licensing deal with them as well.

More about the topics: amazon, apple, aws, icloud

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