Google’s Apple cloud coup

And why it could be a red herring for the cloud

Apple Amazon Google cloud
Reuters/Regis Duvignau (Reuters)

Reports that Apple will increase its use of Google's Cloud Platform while simultaneously building up its own data centers and decreasing its spend on Amazon Web Service's cloud could amount to somewhat of a coup in the cloud wars.

+MORE AT NETWORK WORLDWhy Google hasn't taken off in the cloud, yet +

Since bringing on former VMware co-founder Diane Greene to head up the company's cloud operations, Google has been attempting to attract big-name enterprise customers to its cloud. In recent weeks Spotify announced that it would be migrating some workloads to Google's cloud too (although it is still using AWS). Google also recently announced Sports Authority as a new customer.

This also comes as AWS has had somewhat of a tough week. It started off just fine with the company celebrating its 10th anniversary on Monday. Dropbox announced this week that it would be decreasing its reliance on AWS, although still using the service. Dropbox is building up its own cloud platform that it has customized to its own unique use cases.

Apple could eventually do the same. Wall Street financial analysts predicted earlier this year that Apple would be decreasing its investments in AWS in favor of building up its own cadre of data centers around the country.

Neither Google nor Apple have commented on the story of Apple going with Google over Amazon. CRN first reported the news, but numerous other outlets have substantiated it.

An AWS spokesperson issued the following statement, appearing to discredit the reports that Apple is defecting from its cloud: “It’s kind of a puzzler to us because vendors who understand doing business with enterprises respect NDAs with their customers and don’t imply competitive defection where it doesn’t exist.”

Apple increasing its investment in Google while reportedly scaling back its use of AWS is not great news for Amazon, if its true. But the bigger takeaway from this is fact that companies like Apple and Dropbox are learning how to building highly-customized and efficient data centers that they operate themselves. The more customers build their own data centers, the less they rely on cloud providers, whether it be Amazon or Google.

Note: This story was updated to include a statement from Amazon. 

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