Snap is paying Google $400M a year for cloud services
Over the next five years, the company behind Snapchat will pay Google at least US$2 billion in cloud bills.
On Thursday, Snap revealed in a filing with the US Securities and Exchange Commission that it signed a five-year contract to pay Google at least $400 million a year for cloud services. That's a steep figure, considering that Snap made roughly $404 million last year.
In return for the massive commitment, Snap will receive reduced pricing, though it’s not clear how deep the company’s discounts will be. Sinking a bunch of money into Google Cloud makes sense, because Snapchat began its life built on top of Google’s AppEngine platform-as-a-service offering.
To read this article in full or to leave a comment, please click here