April 26, 2017

Salesforce Spending $100 Million A Year To Host On Amazon’s Cloud (AWS)

Salesforce announced that it has selected AWS as its preferred public cloud infrastructure provider. “We are excited to expand our strategic relationship with Amazon as our preferred public cloud infrastructure provider,” said Marc Benioff, chairman and CEO, Salesforce. “There is no public cloud infrastructure provider that is more sophisticated or has more robust enterprise capabilities for supporting the needs of our growing global customer base.”

“Leading enterprises and ISVs around the world are migrating their business-critical applications to the AWS Cloud to be more agile and efficient, reduce costs, and take advantage of the security, reliability, and broad functionality we offer,” said Andy Jassy, CEO, AWS. “Companies rely on Salesforce to transform their businesses and we are thrilled Salesforce has chosen AWS as their public cloud infrastructure partner, helping them continue to scale, add new services and maintain their incredible momentum.”

Earlier this month Salesforce announced that it was going to host their new Internet of Things (IoT) service on AWS.

What’s even more interesting is how much Salesforce plans to spend, and that according to Fortune is $400 million over 4 years:

More newsworthy is that Salesforce will spend $400 million on AWS services over the next four years. That tidbit was found on Salesforce’s 10Q statement, although the name of the “third-party provider” was not mentioned. Sources close to both companies confirmed that the the provider is AWS.

The deal, agreed to last month is for Salesforce calls for that company to pay $70 million for AWS in fiscal 2017, $96 million the following year, then $108 million and $126 million.

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