Snapchat To Hand Google $2 Billion For Cloud Service Use
The company behind the famous social media app Snapchat called Snap Inc., intends to hand out a whopping $2 billion to Google over the next five years. A sum agreed so the company can use the Google cloud computing services. Snap unveiled the news this Thursday during a public offering filing with the U.S. Securities and Exchange Commission.
Snap and Google signed an agreement on Jan. 30 that obliges Snap to shell out at least $400 million from its pockets every year on Google cloud services for a good five years until 2022. During the first four years of the deal, the company can be pardoned when it delays a portion of its payments.
Snap can roll 15 percent of the amount to the following year although it will have to pay the difference if the minimum purchase agreement is unmet. In exchange, Snap will be able to enjoy discounts from Google. "Any disruption of or interference with our use of the Google Cloud operation would negatively affect our operations and seriously harm our business," wrote Snap in the filing.
According to Snap, it depends on Google for a "vast majority" of its "computing, bandwidth and other services." There is still potential risk as Google can always discontinue the platform, change the terms of services or just go horribly wrong. However, Google is still religiously investing in the cloud platform as it aims to launch new cloud data centers.
With this deal, Snap proves that it is not afraid to take big risks. The company previously acquired an Israeli startup named Cimagine, which centered on augmented reality tech. The tech allows users to virtually place objects according to their liking on their mobile devicesand that's just one of the many recent acquisitions of the company. In 2016, Snap got hold of Vurb, Flite, Seen and Bitstrips.
Google And Employees Donate $4 Million For Immigration Crisis
Google is handing out 4 million USD to support causes related to immigration following Trump's recent executive order.
Google Allows Developers To Submit Apps For DayDream VR
Developers that want to see their app on Daydream must meet certain criteria.
Gmail To End Support On Lower Versions Of Google Chrome
Gmail's support for older Chrome browser versions will stop by the end of 2017.
HTC Will Build Another Flagship Phone, Even After Billion-Dollar Deal with Google
HTC is showing signs of revival with the announcement of $1.1 billion smartphone business deal with Google.
Google Replacing Defective Nexus 6Ps with Pixel XL for Free
Owners of defective Nexus 6P units in the US and Canada are now receiving Google Pixel XL as free replacement.
MORE IN ITECHPOST
The Role of Technology in Education in 2019
2019 is proving to be another great year for trends in educational technology. There are many upcoming trends that seem to have a bearing on the future of the sector with respect to technology.
New Retroreflective Material Could be Used in Nighttime Color-Changing Road Signs
BUFFALO, N.Y. -- A thin film that reflects light in intriguing ways could be used to make road signs that shine brightly and change color at night, according to a study that will be published on Aug. 9 in Science Advances.
Top 5 Video Games to Play for a Truly Unique First Date
Video games have a way of taking us outside of ourselves and live in a fantasy world. It's even better when you're playing a game with someone special!