Re/code Chinese station on February 6th reported
As we all know, Snap is one of Google's largest cloud computing service customers. The question is, how important is Snap in Google's cloud computing business?
Snap has filed an application for IPO and signed a $2 billion contract with Google last week. The contract stipulates that in the next 5 years, Snap will pay Google $400 million service fee per year. As The Information reported on 2016, the money is equivalent to the full revenue of Google's cloud computing sector in 2015.
At that time, Google's cloud computing business revenue of about $400 million, Snap business accounted for about 10% ($40 million). If these figures are accurate, it means that the cost of Snap's cloud computing business will grow 10 times in the next 2 years. If Google's cloud computing business at the same pace, equivalent to its cloud computing business income is expected to reach $4 billion. This is a huge leap, but from the Amazon nearly $10 billion in cloud computing services Amazon Web Services revenue is still far from.
Google declined to comment.