Apple In. (NASDAQ: AAPL) recently moved some of its cloud services to Google’s (NASDAQ: GOOGL) cloud, which is a sign that Google is catching up with its rivals Amazon and Microsoft in the cloud services industry.
Apple has signed a contract worth between $400 million and $600 million to use Google's Cloud Platform. Before Apple switch some of its cloud services to Google, it has been using Amazon Web Service and Microsoft’s Azure for cloud service.
Cloud computing service is growing at a rapid peace. Many high-tech companies are competing for the market share in this area. The major players include Amazon, Microsoft, Salesforce, Google and Oracle. But Google's cloud business was considered long lagged behind those of Microsoft and Amazon. This situation now is changing.
This is good news for Google, but not for Amazon. Google now is taking the market share from Amazon. Spotify, the music streaming service, announced last month that it would shift away from Amazon Web Services and move most of its services onto the Google Cloud platform.
Amazon Web Services is still the market leader in cloud computing. Last month, analysts at Morgan Stanley estimated that Apple would spend $1 billion on AWS services this year, about a tenth of AWS's revenues." However, analysts begin to worry about the its leading position in this industry as they think Apple would cut costs on AWS sooner or later and other rivals are catching up with it.
Apple said last February that it would spend a combined $3.9 billion to build three data centres in Arizona, Ireland and Denmark.
Amazon shares fell 2.57 percent to $559.56 while Google share rose 0.24 percent to $759.05 at 3:12 P.M. in New York.