Snapchat all set to Buy $1 Billion Worth of Amazon Cloud Services

The mass-liked Snapchat app is Snap Inc., which recently said it expected to spend $1 billion (roughly Rs. 6,689 crores) over the next five years to use Amazon.com’s cloud services. This expenditure is in addition to the $2 billion cloud contract it already has with Google.

Snapchat, which started in 2012 as a free mobile app which is now gearing up for it’s IPO listing.

Venice, California-based Snap Inc, is looking to raise $3 billion post filing statement a week earlier.  Snap could be valued at between $20 billion and $25 billion, rendering the company the biggest valuation in a US technology IPO since listing of Facebook Inc.

Snap informed that it relies on Google Cloud to host the vast majority of its computing, storage and bandwidth.

In addition to this, Snap also added specifications in nexus with user habits in the filing form outside North America and Europe.

“Slower and expensive cellular networks outside these two regions have limited the use of its app, which requires high bandwidth”, the company said.

“This means users from these countries tend to be more interested in consuming content than creating it, making them easier targets for Snap’s competitors”, the company added.

It is an app which makes photos run into oblivion with a maximum of 10 seconds. The word spread like forest fire, and soon everybody was seen as a Sanp-buff. The company now competes with top companies like Twitter, Instagram and Facebook for users.

Snapchat has more than 100 million active users, about 60 percent of whom are aged 13 to 24, making it an attractive way for advertisers to reach millennials.

“Fewer Snaps and Chats sent means fewer notifications inviting friends back into the application and therefore lower and more sporadic daily use,” Snap said in the filing.

 

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