Snap commits $2B over 5 years for Google Cloud infrastructure
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Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#2If I could do it all over again I would probably opt for Google. The Kubernetes support is wonderful and the overall user experience blows AWS out of the water.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#3So they hit $400m of revenue in 2016 and have committed to spend at least that much on infrastructure each year for the next 5 years? After all the costs for staffing and everything else they better I hope they achieve amazing growth if they ever intend to profit.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#4So they hit $400m of revenue in 2016 and have committed to spend at least that much on infrastructure each year for the next 5 years? After all the costs for staffing and everything else they better I hope they achieve amazing growth if they ever intend to profit.
It's a crazy world we live in that's for sure.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#5This makes no sense. One cannot spend $33M a month on Google Cloud. (Remember that it's half the price of AWS, and given a contract of that magnitude it's possible that they negotiated yet another half off).
The amount of hardware and services one would get for that bill is insane. Snapchat doesn't need that much computing power and storage.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#6So they hit $400m of revenue in 2016 and have committed to spend at least that much on infrastructure each year for the next 5 years? After all the costs for staffing and everything else they better I hope they achieve amazing growth if they ever intend to profit.
[deleted]
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#7This makes no sense. One cannot spend $33M a month on Google Cloud. (Remember that it's half the price of AWS, and given a contract of that magnitude it's possible that they negotiated yet another half off). The amount of hardware and services one would get for that bill is insane. Snapchat doesn't need that much computing power and storage.
Yeah, that seems really high. $400m a year? They're 10% of Google's yearly cloud revenue on their own? That said it's definitely what the s-1 filing claims:
"Any transition of the cloud services currently provided by Google Cloud to another cloud provider would be difficult to implement and will cause us to incur significant time and expense. We have committed to spend $2 billion with Google Cloud over the next five years and have built our software and computer systems to use computing, storage capabilities, bandwidth, and other services provided by Google, some of which do not have an alternative in the market."
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#8[deleted]
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#9So they hit $400m of revenue in 2016 and have committed to spend at least that much on infrastructure each year for the next 5 years? After all the costs for staffing and everything else they better I hope they achieve amazing growth if they ever intend to profit.
It's a crazy world we live in that's for sure.
There is surely a way to turn that into "accounting debt" that will cancel lots of taxes and save a lot of money one way or another.
Re: Snap commits $2B over 5 years for Google Cloud infrastructure
#10This makes no sense. One cannot spend $33M a month on Google Cloud. (Remember that it's half the price of AWS, and given a contract of that magnitude it's possible that they negotiated yet another half off). The amount of hardware and services one would get for that bill is insane. Snapchat doesn't need that much computing power and storage.
Maybe $400M/year unlocks Google customer support?