New report claims Apple spending less on Amazon Web Services, not more

Posted:
in iCloud
Despite hints to the contrary earlier this week, Apple's spending on Amazon Web Services for cloud infrastructure is actually on a long-term decline, a report said on Thursday.

An Amazon data center.
An Amazon data center.


While Apple spent about $370 million on AWS in 2018, that's down dramatically versus $775 million in 2017, according to a source for the The Information -- a point that AppleInsider made when the report was released on April 22. At the time, CNBC said that 2018 spending was $350 million, yet that the company is paying over $30 million per month in 2019 and likely to reach $360 million by the end of the year.

The $1.5 billion figure over five years, cited by CNBC if accurate, is lower than Apple has spent per annum in the past. In 2016 and 2017, Apple was said to have spent $1.05 billion and $1.08 billion respectively for cloud support services from other vendors.

AWS storage accounted for $700 million in 2017 and $270 million in 2018, a second Information source said. The company is allegedly increasing its AWS demands in other areas such as computing, paying $70 million for that in 2018 against $8 million in 2017.

For years Apple has been working to bring more of its cloud services in-house, both to save money and improve reliability and performance. It's said to want storage as close to customers as possible, for example, as well as redundancy. Another Apple partner, Google Cloud, reportedly suffered a data center fire in 2016 that temporarily killed access to iCloud user data such as photos.

As a consequence Apple discovered that Google was in some cases saving copies of Apple data within a single center instead of spreading it out. Apple was able to recover the lost content, but some of it came from customer devices.

Promises that Google would change weren't enough to forestall decreased Apple spending, though one source said relations are now "quite good" between the corporations.

Apple is reportedly using first-party data centers as a bargaining chip with firms like Amazon and Google.

Infrastructure demands are only set to intensify as Apple Music gains subscribers and Apple TV+ launches this fall. Video bandwidth can easily crush any server or network provider -- in October 2018, data indicated that Netflix alone consumes 15 percent of global downstream traffic, 19.1 percent in the U.S.

Comments

  • Reply 1 of 15
    With so much high-quality sever space at its disposal, why does Apple content take so damn long to load? When I select the TV Shows or Movies app on my Apple TV, it typically takes 5-10 seconds to bring up my content, sometimes as much as 20-30 seconds. I then experience the same delay when I select a specific title. What gives? I have 600MB internet, and Netflix and Prime begin playing almost immediately, so the issue is clearly related to how Apple serves content.
    edited April 25 SpamSandwich
  • Reply 2 of 15
    lkrupplkrupp Posts: 7,072member
    Too late. The news is all over the Internet. “Your iCloud is actually AmazonCloud” reads one persistent headline making the rounds. See how this works, people?

    https://qz.com/1601476/amazon-is-the-datacenter-behind-apples-icloud/


    edited April 25
  • Reply 3 of 15
    Apple has invested in multiple data centers all over the US. The problem is they aren’t all fully online yet. 

    Apple has their own way of doing things, so a data center built the Apple way takes way longer than one from Amazon or Google.
    watto_cobra
  • Reply 4 of 15
    mdriftmeyermdriftmeyer Posts: 7,259member
    With so much high-quality sever space a its disposal, why does Apple content take so damn long to load? When I select the TV Shows or Movies app on my Apple TV, it typically takes 5-10 seconds to bring up my content, sometimes as much as 20-30 seconds. I then experience the same delay when I select a specific title. What gives? I have 600MB internet, and Netflix and Prime begin playing almost immediately, so the issue is clearly related to how Apple serves content.
    Might want to ask the Satellite and Cable operators about that.
    watto_cobra
  • Reply 5 of 15
    With so much high-quality sever space a its disposal, why does Apple content take so damn long to load? When I select the TV Shows or Movies app on my Apple TV, it typically takes 5-10 seconds to bring up my content, sometimes as much as 20-30 seconds. I then experience the same delay when I select a specific title. What gives? I have 600MB internet, and Netflix and Prime begin playing almost immediately, so the issue is clearly related to how Apple serves content.
    Might want to ask the Satellite and Cable operators about that.
    That would make sense it other online delivery methods exhibited similar behaviour, but as I mentioned, Netflix and Prime don't have that delay.
    viclauyycSpamSandwich
  • Reply 6 of 15
    NotsofastNotsofast Posts: 381member
    There weren't any "hints" that Apple was increasing its reliance on AWS. Just the usual horrible state of "journalism" where someone reports an unverified fact and then uninformed bloggers, analysts, etc., speculate as though they were reporting facts, and their speculation gets circulated as more fact. Sadly, readers, as evidenced by many of the silly comments about these common SWAG's posing as facts articles, clearly aren't being taught to do critical analysis/critical reading, etc.
    watto_cobra
  • Reply 7 of 15

    lkrupp said:
    Too late. The news is all over the Internet. “Your iCloud is actually AmazonCloud” reads one persistent headline making the rounds. See how this works, people?

    https://qz.com/1601476/amazon-is-the-datacenter-behind-apples-icloud/


    We know. The difference is we don't become so upset about things over which we have no control and are relatively unimportant in the context of real life.
  • Reply 8 of 15
    With so much high-quality sever space a its disposal, why does Apple content take so damn long to load? When I select the TV Shows or Movies app on my Apple TV, it typically takes 5-10 seconds to bring up my content, sometimes as much as 20-30 seconds. I then experience the same delay when I select a specific title. What gives? I have 600MB internet, and Netflix and Prime begin playing almost immediately, so the issue is clearly related to how Apple serves content.
    Might want to ask the Satellite and Cable operators about that.
    Don't forget to ask the serial objector in Ireland who caused Apple and at least one other major player to abandon projects there.

    watto_cobra
  • Reply 9 of 15
    viclauyycviclauyyc Posts: 350member
    ———in October 2018, data indicated that Netflix alone consumes 15 percent of global downstream traffic, 19.1 percent in the U.S.

    i wonder how much traffic Pornhub used.
    watto_cobra
  • Reply 10 of 15
    macxpressmacxpress Posts: 4,861member
    So in other words...nobody really knows what the hell they're talking about!
    watto_cobra
  • Reply 11 of 15
    docno42docno42 Posts: 3,304member

    As a consequence Apple discovered that Google was in some cases saving copies of Apple data within a single center instead of spreading it out. Apple was able to recover the lost content, but some of it came from customer devices.
    Citation for this?  If true it’s quite disturbing and not inconsequential!
    watto_cobra
  • Reply 12 of 15
    gatorguygatorguy Posts: 20,593member
    docno42 said:

    As a consequence Apple discovered that Google was in some cases saving copies of Apple data within a single center instead of spreading it out. Apple was able to recover the lost content, but some of it came from customer devices.
    Citation for this?  If true it’s quite disturbing and not inconsequential!
    If I'm correct that was back in 2010, almost a decade ago, and the issue was since addressed.
    edited April 26
  • Reply 13 of 15
    IreneWIreneW Posts: 154member

    Apple has their own way of doing things, so a data center built the Apple way takes way longer than one from Amazon or Google.
    In what ways are an Apple data center different, do you mean?
    gatorguy
  • Reply 14 of 15
    MacProMacPro Posts: 18,225member
    gatorguy said:
    docno42 said:

    As a consequence Apple discovered that Google was in some cases saving copies of Apple data within a single center instead of spreading it out. Apple was able to recover the lost content, but some of it came from customer devices.
    Citation for this?  If true it’s quite disturbing and not inconsequential!
    If I'm correct that was back in 2010, almost a decade ago, and the issue was since addressed.
    Can you post the data you were given to from your HQ to verify this?  
    watto_cobra
  • Reply 15 of 15
    gatorguygatorguy Posts: 20,593member
    MacPro said:
    gatorguy said:
    docno42 said:

    As a consequence Apple discovered that Google was in some cases saving copies of Apple data within a single center instead of spreading it out. Apple was able to recover the lost content, but some of it came from customer devices.
    Citation for this?  If true it’s quite disturbing and not inconsequential!
    If I'm correct that was back in 2010, almost a decade ago, and the issue was since addressed.
    Can you post the data you were given to from your HQ to verify this?  
    LOL! You are a funny guy. Funny!
    I am my OWN headquarters, and do my own research. You should try it, you might find it a refreshing break from trolling. :)
    edited April 26
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