Apple has reportedly signed a deal with Google Cloud platform, shifting the Cupertino Company’s attention from Amazon Web Services (AWS).
According to CRN website, a top news source for solution providers and the IT channel, the iPhone maker is spending between $400m and $600m on Google Cloud Platform, making it a significant customer of the Alphabet-owned Company.
Although it remains unclear if the fee is an annual sum or a set amount of capacity.
According to CRN the agreement was completed late last year, but said it will still be using AWS infrastructure to run parts of iCloud and other services.
The deal is likely to see Apple dramatically reduce its reliance on other cloud providers to support its consumer iCloud service, and according to analysts, Apple spent around $1bn on AWS services last year.
“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,” an AWS spokeswoman said.
Neither Apple nor Google has commented on the reports, however, the company last year acquired approximately 200 acres of land in Prineville, Ore, and filed for a permit on new construction that made mention of expanding data centers in the area.