Apple’s spending heavily on Amazon this past year. But it is not televisions or health food or speakers: Apple is the main client of Amazon Web Services customer. Based on a report, Apple spent $350 million on AWS last year, also is on course to increase that to $360 million this year. Additionally, Apple simply signed a contract with Amazon committing to invest at least $1.5 billion euros on the Amazon Cloud Services during the next five decades. Apple’s not the only major spender on cloud services. Streaming music vendor Spotify signed a $447 million deal with Google for three decades of cloud solutions earlier this year.
Netflix has spent tens of millions per month on AWS, but it’s made noise about looking at inner options as well as Google’s cloud offerings. And firm Lyft revealed in its IPO filing that it’s committed to spending $300 million on AWS during the subsequent three decades. Snap, the organization behind Snapchat, is an equal opportunity cloud client, dividing $3 billion of cloud costs during the next five years between Google and Amazon. However, Apple and Amazon, of course, are competitors in several markets. Including flow hardware, media, and programs, with Amazon offering an application store for Android. Amazon tried to compete in phones as well at one stage.
In the technology Industry, Many companies are frenemies and competitors: they collaborate in several things and compete in others. In Amazon’s and Apple’s size, they frequently cannot help, but do so. That competition has not always been favorable, with Amazon’s iOS Kindle application not permitting on stage purchases, and Apple suing Amazon on its application store name at one point. For the cloud, Apple needs what Amazon offers. Interestingly, an independent report indicates that AWS clients over provision, wasting about $6.4 billion annually. That is thanks in part to pricing that is complicated, but additionally thanks to preparing for worst case instances.