Ars Technicom – 1:23:06Apple has signed a deal with online retailer Amazon to use its cloud computing service to run a major part of its business.
The announcement comes days after Amazon acquired rival competitor, Amazon Web Services, for $5.4 billion.
Amazon has since said it will use Amazon’s cloud to power its own cloud computing platform for businesses.
The deal will be a boon for Amazon, which had struggled to attract customers to its cloud services, especially in the tech sector.
In its most recent quarterly earnings, Amazon said its cloud revenue had dropped 9% last quarter and that its cloud had become a drag on its bottom line.
The new deal with Apple could add more than $400 billion to Apple’s annual revenue, according to a report from Wall Street analyst Jefferies.
That is a huge deal for Apple and potentially a new source of revenue for the company.
Apple had already invested heavily in the cloud computing space, paying for a number of large data centers in the U.S. in recent years.
Apple is not alone in investing in the sector.
Amazon and Microsoft both have big deals in the space, with Amazon buying the cloud company, Rackspace in 2016 and Microsoft buying the company in 2017.
Apple’s $40 billion deal with Microsoft to use Microsoft’s Azure cloud platform could also help it attract more business to its online services, analysts say.
Microsoft is one of the most prominent cloud providers in the world, but it has struggled to compete with Amazon and Amazon Web, which have built their own cloud offerings.
Apple also has a growing customer base of more than 100 million in the United States, with more than 5.5 million customers.