Apple predicted to abandon Amazon Web Services for own data centers, analyst says

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Comments

  • Reply 21 of 41
    cnocbuicnocbui Posts: 3,613member
    stevie said:
    People say that Apple is no good at networking and big data, but this proves them wrong.  This is going to kick Amazon's ass!
    No it isn't, unless Apple plans to start competing against them, which just isn't going to happen.
  • Reply 22 of 41
    wood1208wood1208 Posts: 2,924member
    Way to go Apple. Your new non-competing partner IBM is your dependable best bet in putting your own cloud infrastructure. Let's face it. Apple will need ever increasing cloud infrastructure in coming years so why not build your own and continue expanding.. Moreover, Amazon is not good friend as one example of not supporting Apple TV by not releasing their Prime App.to run natively.
    edited February 2016 patchythepiratebobschlob
  • Reply 23 of 41
    From the same guys that couldn't get iCloud services right for at least 2 years. I hope Eddie Cue isn't running this show.
  • Reply 24 of 41
    josujosu Posts: 217member
    steviet02 said:
    From the same guys that couldn't get iCloud services right for at least 2 years. I hope Eddie Cue isn't running this show.
    Launched by Steve Jobs himself making jokes about Mobile Me. IT works fine for me anyway. I don't understand all that complains about it.
    nolamacguy
  • Reply 25 of 41
    irelandireland Posts: 17,799member
    stevie said:
    People say that Apple is no good at networking and big data, but this proves them wrong.
    How?
    edited February 2016 cnocbui
  • Reply 26 of 41
    So we don't even have a rumor here. Just some musings from a Wall Street analyst. But if her thoughts are accurate then Apple needs someone better than Eddy Cue to oversee it.
    SpamSandwich
  • Reply 27 of 41
    How much of this is due to the fact that Apple is now seriously encroaching on Intel's turf with high performance CPUs and cutting edge CPU design. Apple's design teams could be designing a low cost, high performance CPU that could serve their own needs rather than AWS using generic Intel based hardware. If managed right, apple's solution could provide better performance at lower cost while depriving Amazon of profits that are being used to ultimately try and compete with Apple. 

    The implications for this are huge. Intel's DCG profits are in serious trouble. 
  • Reply 28 of 41
    josu said:
    steviet02 said:
    From the same guys that couldn't get iCloud services right for at least 2 years. I hope Eddie Cue isn't running this show.
    Launched by Steve Jobs himself making jokes about Mobile Me. IT works fine for me anyway. I don't understand all that complains about it.
    It was a failure from launch.  Look up it's history, Steve Jobs balled them out in front of the whole company and that was leaked to the press.  Then they were slow to innovate, react, implement features from there.  Including for developers to use once they opened it up for developers to use to sync information with their apps.
    rogifan_old
  • Reply 29 of 41
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.
    SpamSandwichpalominepatchythepiratecrowley
  • Reply 30 of 41
    elijahgelijahg Posts: 2,831member
    How much of this is due to the fact that Apple is now seriously encroaching on Intel's turf with high performance CPUs and cutting edge CPU design. Apple's design teams could be designing a low cost, high performance CPU that could serve their own needs rather than AWS using generic Intel based hardware. If managed right, apple's solution could provide better performance at lower cost while depriving Amazon of profits that are being used to ultimately try and compete with Apple. 

    The implications for this are huge. Intel's DCG profits are in serious trouble. 
    Very unlikely. As others have said, Apple's OS X server offerings are essentially a token gesture nowadays, previously (OS X.6 era) they were at least usable. There's very little server software compiled for ARM and it'd require Apple to rewrite their backend software since they're on a Linux (maybe Sun/Oracle) OS at the mo. As they've seemingly finally got it right with iCloud I don't think that'll happen. 
    stevie
  • Reply 31 of 41
    cnocbuicnocbui Posts: 3,613member
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.
    Too right!  Imagine Apple run by DED - out of business in under a year.
    singularitycrowley
  • Reply 32 of 41
    mjtomlinmjtomlin Posts: 2,687member
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.

    I agree. Apple doesn't do stuff to "screw the competition" they do it because as both Tim and Steve said, they want to be able to control the experience. If you're going to take the heat for any mishaps they might as well be your own. I think it is inevitable that they'll move off AWS and onto their own. They did the same with Akamai not too long ago after building out their own CDN. 
  • Reply 33 of 41
    mjtomlin said:
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.

    I agree. Apple doesn't do stuff to "screw the competition" they do it because as both Tim and Steve said, they want to be able to control the experience. If you're going to take the heat for any mishaps they might as well be your own. I think it is inevitable that they'll move off AWS and onto their own. They did the same with Akamai not too long ago after building out their own CDN. 
    I'm curious, what mishaps happened because of AWS?
  • Reply 34 of 41
    bobschlobbobschlob Posts: 1,074member
    genovelle said:
    bobschlob said:
    "Still true"?? It's a total understatement.
    Apple is so far behind in this field, given the year of 2016, it's almost unbelievable.
    They chose to focus on the things they knew well and like manufacturing, allow others to provide if they remain good partners. There may be a deeper story in this as Amazon was a great partner like Google and Samsung that was not competing with them. Well that changed. What are the chances Amazon is holding back tech or service support levels to maintain their edge. It's unfortunate that everytime Apple has an outage it's a big deal and they get compared to Amazon, but they actually use Amazon for those services. Unfortunately it takes a lot more time to plan, design and build a international data center network and bring it online than writing software like maps. Microsoft, Google and Samsung used their partnerships with Apple to facilitate their success at Apple's expense and Amazon may be the latest to force Apple to just do it themselves since they will get the blame anyway. A good friend used to say "Nobody will take care or your stuff like toy will".

    Yes. You have just elaborated on pretty much exactly what I meant.
  • Reply 35 of 41
    brucemcbrucemc Posts: 1,541member
    ksec said:
    DataCenter expansion is too slow. I think there is some internal discussion and fight as to Whether Apple should go All in on Cloud and Data center. As you can tell by some of their moves, hesitation and struggle. China DC partnership never went into fruit. Ireland DC was more of a political play, it is not even the size you could expect if it was serving the whole of Europe. Apple continue in using and even expanding the use of Amazon AWS and Microsoft Azure. Their CDN has been going back to Akamai. I think, it is in Apple's DNA not to go back into owning these things, like its manufacturing arm. They want to outsource it. And they seems to continue to wait for the market downturn and price competition to give them the advantage.
    I wrote the above on Jan. And as of today it is still true. It seems those R&D money aren't going into Datacenter at all. I am pretty sure Softlayer will grab some of the business from Apple soon. Apple internally has an abstracted API that allows them to use other Cloud Providers, Softlayer will likely add to that list of support. Further balancing the play between Cloud providers, much like its manufacturing arms.
    So you know more about where Apple's capex is being used than their CFO?  Not that I think using 3rd parties is a problem if you get the service quality you need, but just wanted to understand the basis of your claim.

    Culling data from Apple's quarterly earnings report, released last Tuesday, Huberty points to a 30 percent year-over-year jump in capex growth for 2016. During last week's investor conference call, Apple CFO Luca Maestri revealed new data centers play a major factor in this coming year's growth.

    "Then we've got data centers," Maestri said. "And data centers is a growing expenditure for us, because as we mentioned in our prepared remarks, our install base of customers and devices is growing, and it's growing very significantly. And the data center capacity that we put in place is to provide the services that are tied to the install base." 
  • Reply 36 of 41
    ksecksec Posts: 1,569member
    Before I even start, could those that constantly dislike the post, reply with at least some sort of decent reply and explanation? You are not adding anything valuable if you disagree and not posting reasons.

    mjtomlin said:
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.

    I agree. Apple doesn't do stuff to "screw the competition" they do it because as both Tim and Steve said, they want to be able to control the experience. If you're going to take the heat for any mishaps they might as well be your own. I think it is inevitable that they'll move off AWS and onto their own. They did the same with Akamai not too long ago after building out their own CDN. 

    Sometimes it is not just about experience. There is no way Apple can build a CDN that rivals Akamai in short time, so there isn't any "added" experience by using their own CDN. It is a matter of cost saving. For those who are not aware, while AWS or Azure lower its instances ( Cloud Machines ) every year, the pricing for bandwidth has stay pretty much the same over the years. Apple has an increasing need of bandwidth from iOS update, OSX, App Store, Apple Music, etc. those cost are going up.

    Building a CDN that saves bulk of money isn't hard. Building a state of the art CDN that is speedy with low latency and scale well is extremely hard. So while Apple has moved the bulk of the transfer to its own CDN, it is still using Akamai for anything that is critical or requires speed, as well as guarantee reliability, Apple's Event cost millions on Akamai, but they are still using it after their hike up on previous Apple event using their own CDN.
  • Reply 37 of 41
    nolamacguynolamacguy Posts: 4,758member
    cnocbui said:
    I'm always amused with these fantasies about how Apple is going to/should screw it's competition. One minute content blockers and spotlight are going to put a hurt on Google and ooh Apple should do its own search engine cuz that would really screw Google. Or Apple needs to make ARM Macs cuz that would really screw Intel. Now it's bring all their cloud stuff in house so they can screw Amazon. Thankfully I think Apple's decision making is focused on providing the best experience for consumers not how can we screw our competitors.
    Too right!  Imagine Apple run by DED - out of business in under a year.
    and you would do better, eh? hmm
  • Reply 38 of 41
    crowleycrowley Posts: 10,453member
    What an insight. Here was I thinking Apple was building all these data centers to host Tupperware conferences.

    Datacenters based on A series processors by next year! /s
  • Reply 39 of 41
    e.g. datacenters based on IBM Power Systems:

    IBM Power Systems advantages - Power technology for large enterprises

    IBM Power E880: New POWER8-based enterprise system that scales to 192 POWER8 processor cores and 16 TBs of memory while supporting bigger data demands and the most complex, mission critical applications.

  • Reply 40 of 41
    foggyhillfoggyhill Posts: 4,767member
    brucemc said:
    ksec said:
    I wrote the above on Jan. And as of today it is still true. It seems those R&D money aren't going into Datacenter at all. I am pretty sure Softlayer will grab some of the business from Apple soon. Apple internally has an abstracted API that allows them to use other Cloud Providers, Softlayer will likely add to that list of support. Further balancing the play between Cloud providers, much like its manufacturing arms.
    So you know more about where Apple's capex is being used than their CFO?  Not that I think using 3rd parties is a problem if you get the service quality you need, but just wanted to understand the basis of your claim.

    Culling data from Apple's quarterly earnings report, released last Tuesday, Huberty points to a 30 percent year-over-year jump in capex growth for 2016. During last week's investor conference call, Apple CFO Luca Maestri revealed new data centers play a major factor in this coming year's growth.

    "Then we've got data centers," Maestri said. "And data centers is a growing expenditure for us, because as we mentioned in our prepared remarks, our install base of customers and devices is growing, and it's growing very significantly. And the data center capacity that we put in place is to provide the services that are tied to the install base." 
    I'm going out there... Apple has something major coming in the video area... They're being coy, but Cook's mention of "services", make me think that they're going to integrate a kind of netflix service to their platform. They could offer Apple music and video for say $20 dollars per month; if they can provide a bigger catalog than others and even exclusive content, that would really bust up the industry.
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