Snapchat Commits $2 Billion For Google Cloud Infastructure

Must Read

7Caps Free On-Screen Caps Lock Indicator Review

Many laptops and keyboards don't come with an indicator for your caps lock key. Num Lock is...

Are Lithium-Ion Batteries Recyclable?

Electric vehicles are growing every day, and they are certainly going to be the future of automotive...

NASA demonstrates its first all-electric aircraft

NASA has demonstrated it's first all-electric experimental which they have dubbed as the X-57 Maxwell. Its first...
Scott Hartleyhttps://www.sertmedia.com
My name is Scott Hartley I am from Nashville, TN, and love to cover topics related to the latest tech trends, social media, and cars!

Snap (Snapchat) has released their S-1 filing’s today and there is one interesting tidbit of information buried within the filing. According to the document, Snapchat is investing $400 million int cloud services from Google each year for the next five years.

The deal was completed a few days ago (January 30th) and under the terms, Snapchat will be investing more of its money in Google’s service. Snapchat has been using Google’s Cloud platform since 2013 but the size of this deal makes it one of Google’s largest cloud customers. In addition, it also is a sign to investors of the rapid growth of Snapchat and the sheer amount of data they have access too.

Google doesn’t break out its revenue from its cloud infrastructure, instead, it is placed in a category along with their hardware and Google Play sales in an “other section” for revenue. That being said, $400 million a year is a significant portion of that segment’s business which only totaled $3.4 billion in the previous quarter.

Relying on Google though can be a blessing and a curse as Google Cloud is restricted in the Chinese market. Meaning, if Snap is looking to expand to overseas they are going to need to find another vendor for cloud services in mainland China.

“We also face regulatory challenges that may affect our ability to grow in certain markets. For example, we have very limited access to the China market, as we have not yet established an operating presence in China to support Snapchat. Access to Google, which currently powers our infrastructure, is restricted in China.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

7Caps Free On-Screen Caps Lock Indicator Review

Many laptops and keyboards don't come with an indicator for your caps lock key. Num Lock is...

Are Lithium-Ion Batteries Recyclable?

Electric vehicles are growing every day, and they are certainly going to be the future of automotive technology. However, the cars are...

NASA demonstrates its first all-electric aircraft

NASA has demonstrated it's first all-electric experimental which they have dubbed as the X-57 Maxwell. Its first test flight is going to...

Tesla to launch version three of solar roof tiles on October 25, 2019

Tesla is going to launch a new version of its solar roof tiles line up tomorrow October 25, 2019.

Huawei VR Glass Will Launch This December In China

Huawei will finally be launching its own virtuality reality headset. The device has been dubbed the Huawei VR Glass. This has been...

More Articles Like This