It turns out that Google isn’t the only company Snap is paying for cloud and infrastructure support.
Snap also has a $1 billion deal with Amazon to use its cloud computing services, according to an
updated version of its S-1 IPO paperwork made public Thursday morning.
The deal — originally signed last year, then amended on Wednesday — is for “redundant infrastructure support of our business operations,” and Snap says it may also “invest in building our own infrastructure to better serve our customers.”
The agreement requires Snap to spend at least $50 million with Amazon in 2017 and increase its spending each year for the next five years until it reaches at least $350 million in 2021.
Snap’s deal with Google, worth $2 billion over five years, was one of the big takeaways from the company’s original S-1. We knew
Snap was a big client for Google. We didn’t know just how big.
But Snap also left the door open to work with other service providers. While it said that its deal with Google “requires that we use their cloud services for substantially all of our hosting requirements,” it also mentioned that the arrangement “permits us to use other third-party service providers for a portion of our cloud services.”
Enter Amazon, whose cloud business brought in $12 billion last year. And while its Snap deal isn’t as big as the one with Google, it’s still big. And it shows
Snap hasn’t handcuffed itself to just one provider.
One other notable update from the revised S-1: Compensation information for board member
Joanna Coles. Stories circulated this past week that Coles, the former editor of Cosmo and Snap’s only female board member, was being paid significantly less than her male counterparts. That was indeed true in 2016. Coles signed a one-year contract in late 2015, and other board members signed more lucrative four-year deals in late 2016.
But the revised S-1 shows that Coles now has a new compensation deal with Snap that was signed in January. The deal means Coles will make $35,000 cash annually for her board commitments, and she has been awarded a stock grant of 52,736 shares that vest over three years.
That’s an average of nearly 17,579 shares per year, slightly higher than fellow board members Scott Miller and Christopher Young, neither of whom are employees or Snap investors, just like Coles. They signed four-year deals last October that included stock awards of 16,276 shares per year. A few other board members still have more lucrative deals than Coles, but she’s no longer the odd person out.