Slack’s New AWS Spending Commitments
Slack has used AWS’ cloud infrastructure to operate its service since its 2014 launch.
The new deal between the companies was negotiated separately from Slack’s cloud contract, CNBC reported yesterday. AWS declined to comment on deal terms.
Slack last week amended its existing agreement with AWS, according to a quarterly report filed yesterday with the U.S. Securities and Exchange Commission.
Under the amended agreement, Slack committed to paying at least $425 million to AWS over the five-year period that runs from May 1, 2020 through April 30, 2020, with minimum annual commitments of $75 million that will increase by $5 million annually.
Slack previously had an agreement to pay AWS a minimum of $50 million per year from May 2018 through July 2023 for cloud services -- for a total minimum commitment of $250 million under a five-year deal disclosed in a regulatory filing last April, in advance of an initial public offering.