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Report: Apple Shifts Corporate Structure To Better Compete In The Cloud

Report: Apple Shifts Corporate Structure To Better Compete In The Cloud

Apple Inc. (NASDAQ: AAPL) is looking to dominate the fast growing and lucrative cloud market, but a change to the company's corporate structure is needed first.

According to a Bloomberg report, Apple is looking to bring together its internet services groups into one single campus so it can better compete against Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and, Inc. (NASDAQ: AMZN).

Apple's cloud segment consists of Siri, Maps, iCloud, Apple Pay, Apple News and parts of iTunes as well as Apple Music. These segments will now come together under one building — Infinity Loop campus in Cupertino. Currently, the various divisions are scattered across office parks in other areas of Cupertino and Sunnyvale.

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Apple is finishing construction on a new office facility, which began in 2013 and will be called Apple Campus 2. Workers at Infinite Loop will be transitioned to the new building in 2017, which will free up space for the cloud team.

Bloomberg, citing people familiar with the matter, reported that the scattering of various cloud units is contributing to bugs and slow product developments.

Apple has made services a key focus of its growth strategy and grew nearly 20 percent in the recent quarter. However, its cloud services have faced harsh criticism from users, due to technical issues and a lack of new features.

Finally, Bloomberg also noted that Apple is also reorganizing all of its various cloud computing resources to a single system code-named Pie. Parts of Siri, iTunes and Apple News have already moved to the system, and the process is underway and may take years to complete.

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