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Apple May Be Considering A Move From AWS To Google In A Diversification Bid

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The market is almost always buzzing with speculations, and a pretty interesting rumour has managed to catch our notice. In what could turn out to be a major win for Google, Apple may be considering moving part of its cloud business from AWS to Google’s cloud platform.

The news would be a hard hit for AWS, although it shouldn’t particularly be surprised, considering that it’s having a bad run of late with several significant clients switching base of late. While Dropbox has moved part of its data to its own data centres, Spotify — another important customer — has moved to join Google.

A neutral observer may comment that AWS, which had all the benefits of an early start, looks to be losing its edge. The service certainly had a great start and is still far ahead of Microsofts Azure, which follows it behind a wide margin, and Google.

However, Google seems to be closing the gap and assuming that Apple does make the transition, it may serve to encourage others who have been considering making the switch, to move from AWS to Google has well.

There is a big ‘if’ there though. Supporters of the rumor say that Apple, which already uses AWS as well as Azure, is looking to diversify the portfolio of companies providing it with cloud services. However, Apple is boosting its own capabilities significantly and may soon be able to host all the data it wants on its own. The companie’s efforts in the direction include expansion of its Oregon data center along with construction of new establishments in the US and Europe.

In which case,  going to the trouble of moving from AWS to Google, only to move again to its own servers wouldn’t seem like quite the best course to follow. Making it more a question of diversification. Every platform, be it Azure or AWS or Google, has some features unique to them and Apple may want to have them all within easy reach.

Meanwhile, leading content delivery network (CDN) services provider for media and software delivery, Akamai, may also be one of the brands losing a significant portion of Apple’s custom.

Speaking at its earnings call recently, Akamai CEO Tom Leighton said,

Over the last few years, our largest two customers, in particular, have comprised about 13% of Akamai’s overall revenue. As we look ahead to 2016, we expect these two accounts to still be our largest media customers and that they will contribute about 6% of our overall revenue. This seven-point change in contribution results from their increased do it yourself or DIY efforts, and it is the main reason we anticipate a lower year-over-year revenue growth rate over the next couple of quarters.

One of the two ‘largest customers’ is definitely Apple. So we know who, Tom Leighton was talking about.

While AWS, Apple and Google have all declined to comment on the topic and to deny or confirm the rumors that are floating around, we will probably have a more concrete idea of what’s happening behind the scenes, next week — when Google is hosting its big, Google Next event. As we know, Google prefers to make these announcements with noise and Apple coming on board would certainly be worth a fanfare.

Until next week then!


A bibliophile and a business enthusiast.

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