Here are six things to know about the project.
1. Sources familiar with the matter told CRN Apple is spending between $400 million and $600 million on a deal with Google Cloud Services to host much of its iCloud data. Previously, Apple largely used Amazon Web Services to run parts of iCloud and other services. While the company is migrating much of its data to Google, it has not completely dropped ties with AWS.
2. Google is currently seen as No. 3 in the public cloud market. Having Apple as a customer, regardless the size of the deal, is significant, according to CRN.
3. While Apple and AWS’ relationship hasn’t completely ended, AWS could be considerably affected by Apple’s transition. Brian Nowak, a Morgan Stanley analyst, previously said Apple spends nearly $1 billion a year on AWS, which is approximately 9 percent of AWS’ predicted 2016 revenue. Losing that capital is not insignificant.
4. However, Apple is also reportedly building new data centers to house its own data. CRN reports Apple is spending $3.9 billion on data centers in Arizona, Ireland and Denmark.
5. Apple’s plans to build its own data centers may indicate the company’s desire to stand fully independent of fellow tech companies, according to Re/code. And, sources familiar with the matter told Re/code Apple has already started working toward this goal. The project for this independence is named “McQueen” after actor Steve McQueen.
6. Apple anticipates breaking even with its own data centers in three years, sources told Re/code.
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