Snapchat to invest $1bn on Amazon

Social media giants Snapchat is expected to spend $1 billion on Amazon’s cloud services in the next five years.

This is in addition to the $2 billion Snapchat committed to spending on Google cloud infrastructure over the next five years. However, the company clarified that it may choose to build its own infrastructure in the future.

Snapchat’s agreement with Amazon has it spending $50 million this year, then increase its spending in subsequent years until it reaches $350 million in 2021.

Read also: Nigerian named among experts who’ll join team to ‘stabilse cyberspace’

The amended filing was spotted this morning by Recode and Reuters, which both noted the sizable deal with Google, and how Snap is committed to using Google’s infrastructure for the vast majority of its business, including computing, storage, bandwidth, and other services. But the deal with Amazon indicates that Snap is not restricted to using only Google’s cloud as it moves forward.

As Snapchat explains, “our agreement with Google requires that we use their cloud services for substantially all of our hosting requirements,” adding that a Google Cloud disruption of service could harm its business, as could having to transition to a new provider – a move that would be costly, too.

RipplesNigeria ….without borders, without fears

Click here to download the Ripples Nigeria App for latest updates

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now