An analyst at Morgan Stanley reading the tea leaves of recent financial disclosures from Apple predicts that the company could be transitioning away from using Amazon Web Service’s cloud, which if true could represent a blow to the leading IaaS cloud vendor.
In its first quarter earnings call last week Apple executives noted plans to build three new data centers in the next two years. Morgan Stanley analyst Brian Nowak says that could be a sign that the company is looking to decrease its reliance on AWS’s cloud.
Nowak predicts that Apple spends upwards of $ 1 billion annually on AWS, which is about 9% of AWS’s predicted 2016 revenue. “The loss of Apple’s +/- $ 1 bn annual spend could materially impact AWS’s revenue growth (and potential overall profitability),” Nowak writes in the note, which was published Monday.
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Apple could be dumping Amazon’s cloud, Morgan Stanley analyst predicts
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