In the race for speed, Apple said to build its own data network
Apple Inc is gearing up to build its own high-speed network so it can control and push its ever-growing content - be it music, videos, and other content - to users without the slightest delay via the cloud, which is directly aimed at competing with Google Inc, Microsoft Corp and Amazon.com, Bloomberg reported citing people familiar with the plans.
Apple having its own high-speed network will also reduce its cost incurred in fees paid as rent to networks used from other companies, such as Microsoft and Amazon.
Even with its obsession with creating a seamless user experience, Apple does not have control over how its contents are being delivered to users. It is important that Apple take control of that last piece, Andrew Schmitt, an analyst at IHS Infonetics Research, told Bloomberg in an interview.
The company is also looking at how it can improve its data centers so it can bring in outside help in designing its own equipment. The equipment will be made by third-party manufacturers.
Earlier this year, Apple had said it would spend $3.9 billion on new data centers in Arizona, Ireland and Denmark. In February, Apple said it was willing to invest 1.7 billion euros ($1.9 billion) to build two data centers in Europe, according to Reuters.
However, even after Apple sets up its own high-speed data network and makes upgrades on its existing data centers, it may still continue using it current network providers.
Apple is planning to move network pipes that connect Apple's data centers in California, Nevada, North Carolina, Oregon and other locations closer to Internet hubs in more populated areas. This means, Apple will send its content to consumers via broadband networks and cellular towers.
For efficiency, Google, Amazon, Microsoft and Facebook Inc has spent billions of dollars in designing their own servers and data centers. Some companies are also using dark fiber-optic lines which are on lease and only they can use.