Google’s Biggest Cloud Customer Just Signed a $1 Billion Deal With Amazon

February 13, 2017 Off By Hoofer

Grazed from MotleyFool. Author: Adam Levy.

It didn’t take long for Google’s biggest cloud customer to split its allegiances. Just a week after Snap (NYSE:SNAP) announced it signed a $2 billion five-year contract with the Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) company, it signed a $1 billion contract with Google’s biggest cloud competitor — Amazon (NASDAQ:AMZN).

Snap will continue to use Google Cloud for the core Snapchat functionality. The Amazon Web Services contract is for "redundant infrastructure support of our business operations," according to Snap’s amended S-1 filing. The new filing also revealed Snap has been using Amazon for nearly a year, so not much will change in the near term…

But the way Snap’s contract is structured with Amazon, it could be spending nearly as much on AWS five years from now as it is on Google Cloud…

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