Apple is spending billions on a new super-fast network to compete with Google, Amazon, and Microsoft


Apple CEO Tim Cook holding an Apple Watch


Apple plans to build its own high-speed network to deliver services such as Siri, iTunes, and iCloud among others to consumers, according to Bloomberg.

Apple currently relies on traditional network providers to power its online services, but creating a network of its own would allow it to compete directly with companies such as Amazon, Microsoft, and Google - all of which have made big bets on bolstering their cloud services in recent years.

Apple plans to continue working with the service providers and technology suppliers it currently partners with, but wants to improve its own cloud infrastructure too, according to Bloomberg. This would be a big endeavor would cost billions:


"While Apple hasn't disclosed total costs, investments will run into the billions," the report says.

The company isn't going to replace all of the gear in its existing data centers - rather, it's looking into building its own equipment for new facilities.

The report comes after Apple announced earlier this year that it would spend nearly $2 billion on building its first two data centers in Europe.


Creating its system for delivering content quickly to consumers would reduce Apple's reliance on competitors such as Microsoft and Amazon. Apple wouldn't have to rent server space from Amazon and Microsoft if its own technology was able to handle more traffic, a person familiar with the matter told Bloomberg.

Both Microsoft and Amazon have been particularly adamant about the importance of high-quality cloud-connected services. Since Satya Nadella took over as the CEO of Microsoft in 2014, he's emphasized the idea that Microsoft is a cloud-first mobile-first company. Earlier this year, Amazon revealed the numbers for its Amazon Web Services cloud computing service for the first time, revealing that its pulling in about $6 billion per year for the company.

And, the move to improve its own cloud infrastructure is important for Apple now more than ever. The company is about to unveil its own music streaming service, which would require a powerful and fast network to deliver content seamlessly. Apple is also expected to unveil a new TV streaming service next year, which would be even more demanding on its servers.


Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

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