Apple has announced that it is to move a number of its current iCloud services onto Alphabet’s Google Cloud. This marks a major win for Alphabet in its battle against its main rivals in the cloud service market, Amazon and Microsoft, with their Web Services and Azure offerings respectively. The announcement of the acquisition of Apple’s services comes a month after Alphabet revealed that the music streaming service Spotify was shifting from Amazon’s offering to the Google Cloud offering. The recent surge in high profile acquisitions of clients for the cloud services will be comforting news for Diane Greene the recently appointed head of Alphabet’s cloud service offering.
Despite the recent surge in high profile names joining Alphabet its Cloud offering still places third in terms of market share, only possessing roughly six percent, whereas Microsoft possesses 17 per cent and Amazon has 57 per cent. The market leader Amazon was the first name to enter the market a decade ago and has benefited from first mover advantage, despite this advantage worries may be starting to creep in about clients defecting to other providers. A further worry for Amazon and other providers will come from Akamai, an internet infrastructure provider that has warned that larger customers are maintaining a larger proportion of services in house in their own data centres.