TikTok committed to spending at least $800 million on Google Cloud services through 2022, according to a report from The Information.
Slack, meanwhile, recently disclosed it made a minimum commitment to Amazon Web Services to spend $425 million in the next five years as the companies announced a new partnership.
Cloud spending disclosures are relatively uncommon, but Business Insider dug through recent earnings reports and other securities filings to compile a list of companies that disclosed a minimum obligation to a provider like AWS, Google, or Oracle.
Below is a list of how much companies like Snap, Netflix, Zoom, Pinterest, and Lyft have committed to spending with Amazon Web Services, Google Cloud Platform, and Oracle Cloud.
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TikTok in May 2019 agreed to spend more than $800 million on Google Cloud services through 2022, according to a report on Tuesday from The Information.
Google and TikTok have yet to respond to Business Insider's requests to confirm the report, but landing another popular social media app — in addition to Snapchat, a long-time Google Cloud customer — as a customer would be a big win for Google as it tries to upend cloud rivals Amazon Web Services and Microsoft.
It's not often revealed how much companies spend on cloud services. Workplace chat app Slack recently gave us a rare window into this kind of spending when it revealed a commitment to spend at least $425 million on Amazon Web Services in the next five years.
While most companies don't disclose cloud spending, publicly traded firms will occasionally tell investors when they agree to multi-year deals committing to spending a minimum amount with a cloud provider. Signing those deals often yields a discount over the sticker price for cloud services.
Business Insider poured over earnings statements and other securities filings to compile a list of company's current public commitments to cloud providers AWS, Google Cloud Platform (GCP), and Oracle Cloud.
Notably, companies on this list may be customers of multiple cloud platforms, even if they only listed one in their filings. Also, although Business Insider found very few references to Microsoft Azure, that's not a reflection of a lack of big customers. Instead, the way that Microsoft structures customer agreements may not require disclosure in securities filings, one expert said.
Here's how much companies like Snap, Netflix, Zoom, Pinterest, and Lyft have committed to spending with cloud providers Amazon Web Services, Google Cloud Platform, and Oracle Cloud:SEE ALSO: Leaked internal messages show Microsoft employees calling for leadership to take a firmer stand on the George Floyd protests
Slack just agreed to spend at least $425 million on AWS cloud services through 2025.
When Slack made AWS its "preferred cloud provider," the company upped its commitment to AWS to $425 million from $250 million, according to its most recent earnings report.
Slack agreed to increase its annual AWS commitment to $75 million from $50 million, and that amount will increase by $5 million every year until 2025.
In return, Amazon will be rolling out Slack's chat platform to its employees.
Snap is spending considerably on both AWS and GCP.
In Snap's most recent earnings report, the company disclosed more than $1.5 billion in cloud hosting commitments over the next three years.
Snap has a contract with AWS from March 2016 in which the company committed to spend $1.1 billion for cloud services between 2017 and 2022. As part of that deal, Snap committed to spend $215 million on AWS cloud services this year, $280 million in 2021, and $349 million in 2022.
Snap also has a deal with GCP from 2017 to buy at least $400 million worth of "certain cloud services" within five years, meaning through 2021.
Netflix recently said it has more than $1 billion in spending obligations, primarily — but not exclusively — related to streaming delivery and cloud costs.
In Netflix's most recent earnings report, it disclosed more than $1 billion in spending obligations "primarily related to streaming delivery and cloud computing costs," mostly over the next three years.
The company said the amount also includes "miscellaneous purchase orders," and a small portion is due beyond three years.
The filing doesn't explicitly name any specific cloud providers, but Netflix is a marquee AWS customer.
Zoom entered into a $18 million cloud deal around the same time it announced it was working with Oracle Cloud.
In Zoom's most recent quarterly earnings report, the company disclosed that it entered into an agreement on April 30 to spent at least $18 million in as little as 12 months "related to third-party cloud hosting to meet the significant increase in usage of our services."
Around the same time, Zoom announced the company was partnering with Oracle to support a "sudden spike" in video calls during the coronavirus crisis.
Zoom has yet to respond to a request for information about whether the $18 million deal is related to Oracle. Zoom in the earnings report disclosed it works with AWS, Oracle Cloud, and Microsoft Azure.
AWS CEO Andy Jassy during a recent virtual speech made sure to clarify "the vast majority of Zoom's cloud infrastructure runs on AWS and it will for foreseeable future."
Pinterest had $171.3 million remaining in its commitment to AWS at the end of last year.
Pinterest, in its last annual earnings statement, disclosed that the company agreed in May 2017 to purchase at least $750 million worth of cloud services from AWS through July 2023.
Only $171.3 million of that benchmark remained as of the end of 2019.
Lyft agreed to spend $300 million on AWS services by 2021 – but has since extended its term.
In 2019, Lyft agreed to spend at least $300 million on AWS cloud services through June 2021.
According to the company most recent earnings report, however, Lyft amended that agreement to give it more time to reach the $300 million mark: until June 2022.
Lyft reported better-than-expected earnings in May, but has faced challenges during the pandemic, including laying off 1,000 employees in April, about 17 percent of its staff, and furloughing hundreds more.
The amendment to Lyft's agreement with AWS shows the potential unstable nature of these cloud agreements: While companies agree to a minimum commitment, it doesn't guarantee they will be able to pay it in time. Companies that don't hit spending commitment minimums are usually on the hook to pay the difference. Lyft's filing did not disclose any terms for extending the agreement.
$22.7 billion data-analytics company Datadog has a $225 million commitment with AWS and a $37.5 million commitment with GCP.
Data-analytics company Datadog has disclosed hosting commitments with AWS and GCP.
Datadog agreed in April 2019 to spend at least $225 million on AWS cloud services through April 2022. Later in the year, Datadog signed another cloud agreement, this time with GCP, to spend $37.5 million through September 2022.
Datadog, which offers infrastructure and performance monitoring tools for cloud applications, went public in September and now has a market value of more than $22.7 billion.
Carbon Black had a $27.8 million cloud commitment, likely with AWS, prior to being acquired by VMware last year.
VMware acquired cybersecurity company Carbon Black in October 2019 for $2.1 billion.
At the end of the company's last full fiscal year in 2018, Carbon Black disclosed the company had a nearly $27.8 million "non‑cancellable capacity commitment with a hosting provider" through November 2020, including about $10 million in 2020.
While that section didn't name the provider, Carbon Black disclosed elsewhere in the filing that it used AWS for its cloud-based products. VMware's most recent earnings statement does not disclose any hosting commitments, but mentioned partnerships with AWS, Microsoft, Google Cloud, and Oracle Cloud.