Every single day, Pinterest processes & saves millions of food, vacation, fashion photos & videos through Amazon’s cloud. Recently, in the initial public offering filing, Pinterest revealed that they are dedicated to spend around seven hundred and fifty million dollars on Amazon Web Services over a six-year period, which will get over in July 2023. Towards the end of 2018, the remaining amount was over four hundred million dollars, which is around hundred million dollars per year.
However, according to the information revealed in February, the firm has been spending more than that, around a hundred and ninety million on Amazon Web Services in 2018.
The report reveals the way upcoming firms are dependent on public cloud services that are offered by Google, Amazon, and Microsoft. Lyft, which is a ride-hailing firm said in March that they will be spending a minimum of three hundred million dollars on AWS over the period of three years. They will be spending minimum eighty million dollars each year. In 2017, Snap that went public committed to spend one billion dollars on Amazon Web Services and two billion dollars on Google’s public cloud.
In the filing, Pinterest said that presently it is needed to retain a substantial majority of their monthly usage of some compute, transfer of data, storage and other services on Amazon Web Services.
But Pinterest’s contract with the firm has a unique provision that permits the contract to be over if the firm is purchased. Pinterest clarified that they can’t end the contract till the time the minimum spend commitment is fulfilled, besides termination only under some extra conditions. Interesting to know that Amazon is not just a technology supplier to the firm, but also their rival.
In the disclosure under the section on competition, Pinterest reveals Google & Amazon as their biggest competitors, many of them having dramatically bigger financial & human resources.