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Is Apple Ramping Up for a Cloud Fight with Amazon?

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Apple relies on third-party clouds

Apple (AAPL) has long used third-party cloud platforms to support a broad range of its services. However, according to a recent Digital Trends report, the company seems to be quietly building a cloud infrastructure that could see shake the cloud computing market currently being controlled by Amazon (AMZN) and Microsoft (MSFT).

Let’s take a look at the top cloud service vendors according to Synergy Research Group.

Apple reportedly spends hundreds of millions of dollars to run its services on Amazon’s Amazon Web Services (or AWS) and Alphabet’s (GOOGL) Google Cloud.

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Looking for a perfect cloud

A hint that Apple could be up to something in the cloud space came last year when Business Insider reported that the company had moved a portion of its cloud business from AWS to Google Cloud. Perhaps the company made the move to see if one of the services was better than the other. If Apple is working on its cloud as reported, it appears the company feels that none of its current cloud providers is offering the best service.

Because they depend on third-party clouds, Apple services such as iTunes, iCloud, the App Store, and Maps have suffered from sluggish connections, outages, and other disruptions. Apple seems to believe that taking charge of its cloud would put an end to these challenges.

Project Pie

Apple’s cloud infrastructure ambitions are said to be housed under a secretive program codenamed Project Pie. Not only would developing its own cloud free Apple from relying on third-party providers, the move could also save it money and yield incremental revenue.

In the cloud, Apple would face competition from Oracle (ORCL) and IBM (IBM) in addition to Amazon, Microsoft, and Google.

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