Snap Spends $1 Billion on Amazon Cloud Services
Snap Inc is expected to spend $1 billion over the next five years to use Amazon Inc’s cloud services. Snap will stay in their $2 billion contract with Google to use their cloud services. Snap has been using Google Cloud to host the majority of its computing, storage, and bandwidth. The deal they made with Amazon involves Snap’s plan to improve its customer’s experience outside North America and Europe. The regions outside these two areas tend to have slower and more expensive cellular networks making it harder to connect with consumers. Consumers in these countries tend to be more interested in consuming content rather than creating it. This makes it easier for Snap’s competitors to target them. Snap is hoping this deal with Amazon will help them attract and retain these consumers. It will be interesting to see how this works out for Snap.
- How can Amazon Inc.’s cloud services improve Snap’s user experience in the regions outside North America and Europe?
- With having contracts with two different organization’s for its cloud services, should Snap consider building its own infrastructure?