Snap looks like it’s Google Cloud’s biggest customer
The soon-to-IPO company is on the hook for $400 million a year with #Google — equal to the search giant’s estimated 2015 cloud revenue
#SnapInc. is one of Google’s biggest cloud customers. The question is, just how big?
The startup, which has filed paperwork for an IPO, signed a $2 billion contract with Google last week that pays the search giant $400 million a year over the next five years.
That annual payment is roughly equivalent to the entire revenue Google’s cloud division was expected to bring in for 2015, as reported by The Information last July.
At the time, Snap’s business accounted for about 10 percent of Google’s $400 million cloud business, or about $40 million. If those figures are accurate, Snap’s cloud costs will have increased tenfold in two years.