“Twitter Inc. will use Amazon Web Services to help power its endless stream of posts,” Bloomberg reports.
Why It Matters: Rather than rely on its own data centers, Twitter is jumping on-board with one of the cloud-computing space leaders. The deal deepens the ties between companies — Amazon gets a lucrative contract, and Twitter unloads the burden of managing its cloud operations.
Amazon Web Services has been on a tear as the pandemic continues to accelerate a shift in corporate technology spending “away from on-site servers and company-run data centers, and toward computing power and software services purchased on demand.”
- AWS, Microsoft and Google are winning contracts left and right by “promising the ability to quickly ramp up or reduce server capacity depending on companies’ needs.”
- AWS counts Netflix and Airbnb among its early customers.
So how does this help Twitter? The social media platform can now route its operations through data centers closer to where people live.
- Twitter CTO Parag Agrawal said Twitter could “ship features faster” using Amazon’s suite of products.
Twitter has already engaged Amazon’s services for years, part of which has occurred through acquisitions. AWS Sales and Marketing Chief Matt Garman said, “Twitter’s increased reliance on the cloud should save money, free up developers to work on other products, and allow the social media company to grow more quickly in areas where they don’t have data centers.”
The Final Word: Financial terms of the deal weren’t disclosed, but it’s known to be a multi-year agreement.