iCloud is Apple’s main cloud service, but it apparently considered providing developers with more.
Apple reportedly was considering providing cloud services to app developers, as executives considered the creation of a rival offering to services sold by Microsoft, Google, and Amazon.
Developers often rely on cloud servers for various tasks, ranging from data storage to off-device processing. While the major names in the field include the lies of Microsoft, Amazon, and Google, Apple could’ve been another name on the list.
According to sources of The Information Apple has internally considered providing server-rentals to developers of iPhone and Mac apps. The deliberations, which have happened over the last few years, have not yet resulted in such a service existing, but there’s a chance one could eventually turn up.
Executives had envisioned the use of its own chips in servers, used to perform number crunching for clients, including for AI purposes. However, the proponents of the idea thought that Apple’s chips are so efficient that developers could end up saving money versus current-gen cloud services.
Unknown future
The internal talks were largely headed up by cloud executive Michael Abbott, who was reportedly the biggest driver of discussions. However, after departing Apple in 2023, talks didn’t die down completely.
Discussions on the topic apparently took place in the first half of 2024, but it is unknown if any took place after that time. It is also not known if the talks have died completely, or whether they continue at a smaller or more secretive scale.
Thunderstruck
The idea of Apple using its own chips to create cloud services is something that has been reported on before.
A secret project, internally known as “Project ACDC” (Apple Chips in Data Centers), surfaced in May 2024 as Apple’s attempting to develop Apple Silicon specifically for server farm use. The chips would be dedicated to AI processing.
Part of this initiative was the creation of Private Cloud Compute, which uses Mac chips in Apple’s data centers for AI processing purposes. The Siri team was the first to try them out, with report sources adding that performance improved in terms of accuracy and processing cost versus servers with Intel chips.
The project then grew to include the Photos and Apple Music teams. It was even referred to internally as a highly private version of Amazon Web Services, the retailer’s major service that is a big part of modern-day Internet infrastructure.
When it comes to dealing with heavier loads, Apple also has considerable experience, due to using its servers to process Apple Wallet transactions.
It’s also still working on the idea of making server hardware. In May, it was reported that Apple was still keen on the idea of making new AI server chips, replacing the M2 Ultra currently used for remote Apple Intelligence queries.
Massive revenue potential
While it is unknown if Apple will actually go forward with creating a cloud service for use by app developers, it’s a thing that could become quite lucrative for the company. Not to mention saving it money.
Apple already spends about $7 billion per year on cloud services from Amazon and Google, chiefly for AI training. By building up and using its own infrastructure, it would reduce what goes out of the company in terms of payments, if not necessarily saving money directly.
As for offering cloud services, a good indicator of what Apple could earn is Google’s revenue. As of 2024, Google Cloud makes up 12% of Alphabet’s revenue, hauling in $43.2 billion in revenue.
It’s not hard to see how Apple, with its AI-forward hardware, could make a killing on server rental. It just has the massive and expensive task of building up its own infrastructure first.
