Apple spends more than $ 30 million on Amazon Web Services a month
In a job advertisement from February, Apple said it was looking for someone who could "lead and architect our growing AWS footprint."
These expenses are actually on the right track to expand.
In late March, Apple's spending was on average more than $ 30 million a month in the first quarter of 2019. That would be more than 10 percent higher than the same period last year, according to two people familiar with the spending.
If Apple's AWS usage stays at these levels for the rest of 2019, annual expenses will exceed $ 360 million. Apple spent about $ 350 million in 2018, one of them said.
Expenses will probably continue for the foreseeable future. In recent months, Apple has signed a deal that includes a commitment to spend at least $ 1[ads1].5 billion on AWS over five years, a source said. In the last fiscal year, Apple had $ 30.94 billion in operating expenses.
AWS is a big part of Amazon's business. In 2018, AWS delivered $ 25.66 billion in revenue, or 11 percent of Amazon's total annual revenue, and nearly 59 percent of Amazon's revenue. While Apple is one of the best AWS customers, payments make up a small amount of Amazon's total revenue.
At these prices, AWS will pick up more revenue from Apple than from several other companies, including Adobe, Capital One, Intuit, Lift and Pinterest, based on public applications and a report in the information.
For comparison, Lyft has agreed to pay AWS at least $ 300 million for shooting services through the end of 2021, while Pinterest said it has committed to spend at least $ 750 million on AWS over a six-year period ending in mid-2023. averaging $ 100 million a year for Lifting and $ 125 million a year for Pinterest. Snap has pledged to spend $ 1.1 billion on AWS through the end of 2022, at least $ 150 million in 2019.
Amazon has a growing amount of money that customers have committed to using services in the future, mainly related to AWS. At the end of 2018, there were $ 19.3 billion in commitments for contracts with original terms that last longer than one year, Amazon said in a filing.
Apple refused to comment. Amazon did not respond to a request for comment.
Correction: This article has been updated at the right time for Apple's planned infrastructure investment.
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