The company is on the hook for $400 million a year.
Here’s a nugget from Snap’s IPO filing: The social media company has a $2 billion contract with Google for cloud services.
It’s not news that the $25 billion startup relies on Google Cloud, but now we know how much Google is getting out of the deal — and what Amazon Web Services is missing out on.
On January 30, 2017, we entered into the Google Cloud Platform License Agreement. Under the agreement, we were granted access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Our agreement with Google permits us to use other third-party service providers for a portion of our cloud services.
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Author: Tess Townsend
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