Apple Finally Graduates from an Amazon Web?
Morgan Stanley market analyst: Apple expected to take its web services in house from Amazon Web Services.
Apple may finally be taking complete control of its online destiny by moving away from Amazon Web Services, top Morgan Stanley analyst Brian Nowak posited recently. Although the change would take at least two years, he claims to see the writing on the wall today. Nowak claims to receive his information from an Apple expert – Apple analyst Katy Huberty noted that Apple is relying less on its Amazon Web cloud computing network.
The Smoking Gun, Straight From the Horse’s Mouth
In 2016, Apple reported a 30 percent year over year jump in the growth of capex. Apple CFO Luca Maestri himself said that new, in house data centers will play a huge role in growth for the company in the near future. Maestri hinted at an in house infrastructure being created to service the growing user base of the company.
The Global Command Center
Apple openly plans to unveil a $2 billion data center Death Star on its Mesa, Arizona property. The company will also spend an additional 1.7 billion euros on dual data centers in Ireland and Denmark. These dual centers will service European customers specifically.
Culling this data and the announcements, Huberty estimates that Apple will build around 2.5 million square feet of in house data centers. This total area is around 35 percent of the total data center floorspace that Amazon currently has around the world. Once the centers are built, Apple will have the capacity to completely service all iCloud, iTunes and supporting services in house.
Moving away from Amazon Web Services would save Apple billions over the next few years. Morgan Stanley predicts that Apple will pay over $1 billion in fees to Amazon Web Services in 2016 and 2017, with costs to rise in each subsequent year. Based on this data, it makes sense that Apple would build its own infrastructure to save on costs, and there is no reason for Apple not to. Nowak expects Apple to completely move away from Amazon Web Services within the next 18 to 24 months, although no time frame has been announced officially by Apple.