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Your iCloud is actually AmazonCloud

By Quartz

Apple is spending more than $30 million a month on Amazon’s cloud service, reports claimRead full story

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  • John Gerzema
    John Gerzema proCEO at The Harris Poll

    But why wouldn’t Amazon adopt an SAP-like “Best Run Companies Run on AWS” marketing identity and trade off that? Intel, after made OEM’s into a mark of trust and reassurance...especially given the cloud wars and rise of brilliance in B2B marketing...

  • iCloud uses AWS, which means Apple is the biggest example yet of AWSaaS, my very awkward coinage for cloud services that are built on top of other cloud services. I wrote about this trend when Twilio, which hosts everything on AWS, went public: https://qz.com/1601476

    You might think it’s precarious to build a service on top of AWS that could easily be replicated by AWS itself at a price that, by definition, will always be cheaper. And, in fact, for both iCloud and Twilio, there are already Amazon-owned

    iCloud uses AWS, which means Apple is the biggest example yet of AWSaaS, my very awkward coinage for cloud services that are built on top of other cloud services. I wrote about this trend when Twilio, which hosts everything on AWS, went public: https://qz.com/1601476

    You might think it’s precarious to build a service on top of AWS that could easily be replicated by AWS itself at a price that, by definition, will always be cheaper. And, in fact, for both iCloud and Twilio, there are already Amazon-owned replacement services. But it turns out you can build really big businesses that way. (Twilio is up 8x from its IPO price over three years.) Some lot of the enterprise tech companies going public this year are also in this category of AWSaaS startups. Stripe is another great example. In all cases, they win over AWS itself by providing a better, more-focused user experience.

    Of course, none of this is a problem at all for Amazon. As the article reports, it just signed Apple to a $1.5 billion deal over five years to essentially white-label AWS as iCloud.

  • Luis D Contreras
    Luis D ContrerasManager at Strategy&

    ...and your Netflix, and your Airbnb bookings, and your Yelp reviews, and your Lyft rides, and your ticket purchases on Ticketmaster, and your Spotify playlists, and your Coursera training courses...

  • David Anthony
    David AnthonyLead Systems Engineer

    Two decades ago, a past CIO introduced me to what he called his "overflow to vendor" strategy- that is, when your normal services can't handle the volume, or your services are unavailable for some reason, to continue those services, proactively work with a vendor ahead of time to ensure continuity of service.

    What Apple is doing here is obviously good business - ensuring continuity of service. It's curious, and likely somewhat temporary that they're leveraging a competitor for that overflow, but

    Two decades ago, a past CIO introduced me to what he called his "overflow to vendor" strategy- that is, when your normal services can't handle the volume, or your services are unavailable for some reason, to continue those services, proactively work with a vendor ahead of time to ensure continuity of service.

    What Apple is doing here is obviously good business - ensuring continuity of service. It's curious, and likely somewhat temporary that they're leveraging a competitor for that overflow, but they're placing service to the customer first - always a good thing. My bet is that Apple will continue to build its infrastructure so that it's not so dependent on Amazon, or if at all possible, diversify its dependencies across other providers, additional costs notwithstanding.

  • Weiyee IN
    Weiyee INChief Strategy Officer

    As Zach comments there is significant advantage in outsourcing cloud services, the primary one at the size of Apple would be in the ability to be flexible and scalable, otherwise just managing loading would be a nightmare. Companies that have done white label or outsourcing for either product manufacturing or even business process, have been either involved with other clients that are competitors or have even had ownership in such companies for decades. The really interesting challenge from Apple's

    As Zach comments there is significant advantage in outsourcing cloud services, the primary one at the size of Apple would be in the ability to be flexible and scalable, otherwise just managing loading would be a nightmare. Companies that have done white label or outsourcing for either product manufacturing or even business process, have been either involved with other clients that are competitors or have even had ownership in such companies for decades. The really interesting challenge from Apple's side is not in the potential conflict or competition, but rather more importantly being held captive to the cloud provider. Corporate clients do not fully appreciate how sticky cloud services are, an amazing position for Amazon to be in, and why Microsoft is throwing so much effort into Dynamics365 and Azure.

  • Douglas McIntyre
    Douglas McIntyre Editor at 24/7 Wall St

    Getting almost impossible to live without some connection to Amazon

  • William Wood
    William WoodOwner at William Wood

    Works for me, the layer Apple applies, enables the cross platform compatibility that just works. You also need to look at Apple’s zero carbon footprint plans. Server farms are are energy sink holes.

  • Chris McCauley
    Chris McCauleySoftware Engineer

    I was surprised to know the news.

    I guess that Apple uses S3 which AWS provides storage service.

    S3 is very reliable and secure service. Apple couldn't build similar service themselves.

  • Henry Tobias Jones
    Henry Tobias JonesEditor of Dyson on: at Dyson

    Very interesting read.

  • Naoya Shimosakaida
    Naoya Shimosakaida

    It’s interesting for the best company to rely on a competitor

  • I still have not bought Alexa, HomePod or GoogleHome. Always listening device always bothered me but it is really getting harder to avoid this amazing useful product! But which one?

  • Baskar Subramanian
    Baskar Subramanian

    How many of us know that our iCloud is partially on AWS. Interesting fact!

  • Knowing who holds your data and where your data is stored is getting more and more complex. Users need to think hard when they store anything in the Cloud. A simple principle—- ensure what you send through cloud services is something you wouldn’t mind going public should there be a breach of data privacy.

  • Renee Hopkins
    Renee Hopkins

    Of course.

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