Summary List Placement
Along with other cloud providers, Amazon Web Services typically offers
discounts to customers that commit to a multi-year contract and a minimum
amount of spending. Airbnb’s recent IPO filing revealed there’s some
flexibility in those contracts.
Airbnb originally agreed to spend at least $1.2 billion on Amazon cloud
services through 2024, but received a three-year extension on the
contract per a September 30 amendment, pushing the date to 2027, shortly
after CEO Brian Chesky publicly said Airbnb was planning to “get more
efficient” with Amazon Web Services spending.
Cloud-industry consultant Corey Quinn, whose firm Duckbill Group helps
companies save on cloud costs, said Airbnb is the latest example showing
how even existing AWS contracts are up for negotiation. Snap, he notes,
renegotiated its AWS contract in 2017: It turned its five-year, $1
billion commitment into a $1.1 billion commitment over six years. AWS did
not comment in response to a Business Insider inquiry for this report. …
