Apple Expands Cloud Service With Google While Preparing Its Own Infrastructure

By Staff Writer

Mar 18, 2016 11:59 PM EDT

Apple expands its cloud storage by using Google cloud platform. The Cupertino-based company reduced its dependencies with Amazon Web Server (AWS) as the workload of Apple's cloud service is getting bigger.

CRN was the first to report the deal beween Apple and Google on Wednesday as many sources with knowledge with the matter told CRN. Apple made an agreement with Google last year to use Google cloud platform, reducing its reliance to Amazon Web Server (AWS).

Previously, Apple was reported to use infrastructure from Microsot Azure and AWS, but neither Microsoft nor Apple has ever confirmed the news. Later on, Apple acknowledged of storing part of iOS encrypted files in Amazon S3 and Microsoft Azure in its 2014's Apple iOS Security white paper.

Amazon does not see the cooperation between Apple and Google as a competitive defection. A statement sent to CRN spokeswoman of AWS said, "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."

Google has aggressively expanded its cloud service as November last year it hired VMware co-founder and former CEO Diane Greene to lead Google's cloud business. Google was also in conversation with Verizon to form a strategic partnership since last month. Google plans to include Verizon hybrid cloud service to run on Google Cloud Platform.

Apple is reported to spend up to $600 million on Google Cloud Platform, much lower than its $1 billion annual fee to AWS. Aside from Apple, Google also landed new customers. Spotify last month signed an agreement with Google to store part of its streaming music service on Google cloud alongside AWS.

Meanwhile Apple also intended to have its own cloud infrastructure, as Venture Beat reported that Apple has been working on project McQueen for the past several months. The project will build a data center infrastructure for Apple in order to reduce its dependence on public clouds. Sources told Venture Beat that Apple has bought land in China and Hong Kong to build the data centers.

The project is called McQueen in reference to the Steve McQueen 1963 film "The Great Escape."  The name hinted Apple's plan to break free from dependency on cloud services from vendors.

Therefore, even though Google scored a win by landing Apple as its customers, according to Re/Code, it might be short-lived as it looks like Apple is also simultaneously building out its own system to bring data stored on its millions of devices in house.

Alphabet's Google has landed Apple as a customer for its cloud computing platform. Meanwhile Apple has also begun its plan to build its own cloud infrastucture in Project McQueen.

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