Snapchat's billion dollar deal with Amazon
Snap's latest updated paperwork for its IPO includes this detail: The company has a $1 billion deal with Amazon for cloud services.
The details: The deal — first inked in 2016 — was updated this week to commit the company to spending more money each year with Amazon for five years, culminating in $350 in 2021. Amazon will provide Snap with "redundant infrastructure support of our business operations."
In context: Amazon isn't the only cloud provider Snap is relying on as it heads toward going public. The company also has commitments to Google worth $2 billion. That relationship is significant enough to get a mention in the company's list of risk factors for the IPO. Snap said in its filing that "disruption of or interference with our use of the Google Cloud operation would negatively affect our operations and seriously harm our business." That agreement is also notable for Google's business.