According to the reports by financial times and CRN, Apple has inked deals with Google to power part of iCloud and other cloud-based Apple services with Google Cloud Patform. The total value of the contract has not been disclosed, but sources have told CRN that the money will be coming from Apple’s expenditure on AWS.

This doesn’t mean that the iPhone-maker will quit using AWS altogether. According to the sources, Apple has cut its spending on AWS by as much as 50 percent. According to Amir Efrati, The Information’s reporter, it will take almost a year for Apple’s iCloud to be powered by the Google Cloud Platform.

It’s true, @iCloud to be partially powered by @googlecloud. But will take a year & unlikely to be profitable. @awscloud lost $ from iCloud.

— Amir Efrati (@amir) March 16, 2016

AWS & Google Cloud Platform Rivalry

Recently, Amazon and Google have been involved in pricing wars, but it seems that the search giant claims to be the “price/performance leader.” According to Google, its cloud services are 15-41 percent less expensive than Amazon’s Cloud service.

According to a recent report by the Wired, AWS also lost Dropbox as a customer, but Dropbox didn’t choose the Google Cloud platform. Dropbox has enough resources to build and run its own data centers.

Since Diane Greene became the new head of Google cloud business, it has been a good month for Google. Last month, a high profile client Spotify became the new customer of Google Cloud platform and now their arch rival Apple has become its client. This would certainly help the search giant in attracting more enterprise customers to its Cloud services.

Google Cloud Platform to power part of Apple’s iCloud with While this is obviously a win for Google, but it might be short-lived as the Apple is planning to expand its existing data centers and build new ones. The iPhone-maker will use them eventually to power its own cloud-based services.