Lyft is on the hook to pay Amazon Web Services $300 million for cloud computing services by the end of 2021.
Buried in there is the revelation that Lyft is contractually obligated to pay at least $300 million to Amazon Web Services, the retailer's market-leading cloud computing business, between January 2019 and December 2021. Some quick napkin math shows that — depending on when exactly the contract starts in January 2019 and ends in December 2021 — Lyft is committed to spending between $8.33 million and $8.57 million a month on AWS, which hosts its entire app and platform.
Notably, too, Lyft warns that if its usage of Amazon's cloud doesn't hit or exceed that $300 million threshold, it says that it'll have to pay the difference. Lyft committed to spending at least $80 million in each of the three years of the deal, with the stipulation that it will spend $300 million in aggregate overall.
It's not uncommon for high-flying startups like Lyft to rely on the cloud. So-called public cloud computing platforms like Amazon Web Services allow developers to rent supercomputing capacity from the tech giants' own massive-scale data centers. It means that as a company grows, it can add more computing capacity with the push of a button.
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