Apple Is Amazon’s Biggest Customer, Spends Over $30M Per Month On AWS


But many may not know that Apple is a top customer of Amazon's cloud services known by the name Amazon Web Services.

Media reports quoting people familiar with the matter claim that Apple is spending roughly $30 million every month on AWS, making it one of the services' biggest users.

Apple has used AWS for iCloud storage in the past but has not publicly said if any of its other services also use AWS or other cloud providers. That is a gain of more than 10 percent from the same period previous year.

Despite all this, Apple now spends more than $30m a month with AWS, people familiar with the matter told CNBC - more than any other publicly announced customer.

However, Apple is also building up own data center capacity: In January 2018, Apple earmarked a budget of $10 billion for data centers in the US with half the amount going to be spent in 2019.

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The report's sources tell CNBC that Apple's current agreement with Amazon is an obligation to pay at least $1.5 billion on Amazon Web Services over five years. This was all demonstrated in a February job posting for a Senior DevOps engineer at the company.

As Apple increasingly turns its focus toward bringing in revenue from services and not just hardware, it's depending on a rival to help provide some of the necessary infrastructure.

Should these conditions hold up Apple will be on track to spend more than $360 million on Amazon Web Services this year. All that said, Apple is now at work trying to build its own cloud infrastructure, meant to improve the company's ability to deliver internet services without having to rely on its friendly competitors.

Lyft will be paying AWS at least $300 million for cloud services by the end of 2021, while Pinterest has committed at least $750 million on AWS for the next six years.