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Slack Will Pay $250 To AWS In 5 Years—Recent Report

Slack on Friday said that the company has a huge commitment of spending money with the Web Services of Amazon through 2023, although the company isn’t a big customer as the other companies that had gone public recently like Pinterest and Lyft.

As per the filing of the company with SEC, Slack in 2018 has signed with AWS an agreement for spending minimum of $50 million per year over a period of five years, for at least $250 million. In January 31, remaining $212.5 million has been remaining as per the contract. Slack has said that it is using AWS which is a public cloud vendor as their delivery and processing infrastructure.

Amazon on Thursday said that the revenue of AWS rose 41% to $7.7 billion in first quarter and it accounted for half of Slack’s operating profit. However, Amazon hasn’t given any details of how much it receives from its top customers, but information is coming as companies on AWS are going public and disclosing their finance.

Lyft has said that the company is committed to spend minimum $300 million for three years on AWS, from 2019–2021. Pinterest has said that it would spend minimum $750 million for six years on AWS which would end in 2023. But none of the companies are spending as much as Apple. It is spending $30 million per month with Amazon to deliver iCloud services to its customers. Slack’s least spending is equal to 12% of its annual revenue and 10% of its expenses for 2019. The company has said that sales rose 82% to $400.6 million for 2019 and the company reported a loss of $138.9 million. Uber is not breaking its cloud costs. It said that it uses third party services for computing and data centers in abroad and US.