Apple Inc recently started using Google’s cloud service even as it simultaneously builds its own data centers to reduce its reliance on third-party service providers, technology news website Re/code reported, citing sources familiar with the deal.
The iPhone maker is spending between $400 million and $600 million on Google’s cloud services, tech magazine CRN reported, adding that it was unclear if the range was for an annual rate or a set amount of capacity. (http://bit.ly/1XwAdvk)
CRN said Apple has also significantly reduced its reliance on Amazon since signing up with Google late last year.
Apple, Amazon and Alphabet Inc-owned Google could not be reached for comment outside regular U.S. business hours.
Apple said last February that it would spend a combined $3.9 billion to build three data centers in Arizona, Ireland and Denmark. The Arizona facility is planned to be a command center to manage its other data centers.
Google has also been pushing to gain share in the fast-growing market. In November, the company appointed industry veteran Diane Greene to run its cloud business.
Last month, Google signed a deal to provide cloud services for online music streaming platform Spotify.