“Amazon is making Apple computers available through Amazon Web Services, its cloud-computing business—enabling Apple developers to make and fully test apps remotely, rather than having to buy and maintain their own versions of the machines,” WSJ writes.
It’s a big deal, as the partnership between the two tech giants could “aid developers who are at the heart of a software and services strategy that is an increasingly important sales driver for Cupertino, Calif.-based Apple.”
- Amazon is installing the current version of Apple’s Mac Mini computers at data centers but plans to update with Apple’s technology over time, such as the new M1 chip rollout.
How It Helps: Amazon sees this as an opportunity for developers and companies to produce iPhone and iPad apps faster and more intuitively while avoiding the universal hardware issues that previously separated Macs from mainstream products such as cloud computing services.
- Developers generally had to buy and maintain their own Macs to develop and test Apple-based products.
The union is already underway, as several companies, such as tax-preparation software Intuit Inc. and Amazon’s Ring video-doorbell security system, have already started working with Amazon Web Services’ Macs.
The other large-scale cloud providers, Microsoft and Alphabet’s Google, don’t currently offer compatibility with Mac machines.
- Amazon didn’t specify how many Macs it was installing but said the scale was “suitable for a major cloud-computing operation like AWS.”
This strikes me as more telling about Apple ($AAPL) than it does Amazon ($AMZN) AWS. Apple has always been a walled garden, limiting interoperability on the basis of quality, experience, design, and brand. This marks a small move towards increasing interoperability.
Apple ($AAPL) has been signaling that it’s a defensive cash cow for quite some time, which is why I haven’t liked owning the stock since August and it’s been flat since. To be fair, most of the FAANG stocks ($FB, $AAPL, $AMZN, $NFLX, $GOOG) have been flat since that time. We’ll see how these do over the coming years.