Snapchat owner announce he expects the company to spend $1 billion over the next five years to use Amazon’s cloud services.
Under these terms, a Fortune article notes that SnapChat is committed to spend $1 billion on Amazon Web Services by December 2021. The agreement calls for it to spend $50 million this year, then $125 million, $200 million, $275 million, and $350 million in each subsequent year. If Snap does not meet minimum purchase requirements in any of those years, it must pay the difference.
This is in addition to the $2 billion the company already pays to Google for the use of their cloud service.
Snap is emerging as a major user of public cloud services, and a high-profile example of companies using more than one cloud provider.
Venice, California-based Snap, Inc., said it has been relying solely on Google Cloud to host the vast majority of its computing, storage, and bandwidth.
Snap may eventually invest in building its own infrastructure, it said on Thursday, in an amendment to a filing related to its planned stock market debut in March.