Snapchat owner Snap has loosened its purse strings to spend an expected $1bn on Amazon’s cloud services over the coming five years, supplementing its existing $2bn cloud contract with Google.
Snap Inc.’s updated S-1 filing with the Securities and Exchange Commission mentions a deal with Amazon’s cloud-computing arm that the company had not previously made public, Recode reported Thursday. According to the filing, Snap signed a five-year deal with Amazon Web Services last year, which will cost it $1 billion. Snap says the money will be spent on “redundant infrastructure support of our business operations,” but leaves the door open to dedicating money toward building its own infrastructure in the future.
The deal is notable because in the first version of its S-1, Snap revealed that it also had a deal with Google Cloud Services, in which it was required to spend $2 billion over five years. The company is rumored to go public as early as March.
Cloud services have become a popular area for expansion for tech giants like Google and Amazon. Amazon Web Services, for example, brought in $12 billion in revenue in 2016. That figure is expected to grow to $14 billion this year, according to Fortune.
Agencies/Canadajournal
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