A new report from CNBC shows how much Apple depends on Amazon despite their sometimes competitive nature. The report indicates that the Cupertino, California tech giant spends $30 million per month with Amazon for Amazon Web Services, or AWS. AWS is what powers iCloud and likely will be the cloud solution behind other upcoming Apple services.
At the end of March, Apple’s spending was on track to average more than $30 million per month in the first quarter of 2019. That would be more than 10 percent higher than the same period last year, according to two people familiar with the spending.
If Apple’s AWS use stays at those levels for the rest of 2019, its annual spending would exceed $360 million. Apple spent approximately $350 million in 2018, one of these people said.
The report from CNBC expects that this growth trend will continue for Apple. The Cupertino tech giant has reportedly signed an agreement with Amazon to spend at least $1.5 billion on AWS over the next five years. That points to the company ramping up its dependence on the cloud service for new services that are set to launch. Those new services, like TV+, Arcade, and even News+ could all be running on AWS. The report from CNBC however did not explicitly call out if this was the case.
It is all part of a larger push by the company to move to being a services company and for them to deliver those services, they will need a solid cloud platform to do it on.