Thursday, May 26, 2016

Amazon Web Services, Salesforce Deal Worth $400M

The big announcement by Amazon Web Services and Salesforce--which essentially moves the "Salesforce Cloud" to Amazon's infrastructure--is worth a cool $400M over the next four years, according to details in Salesforce's 10-Q. In that filing, Salesforce said it had agreed to pay $70M in fiscal 2017, $96.0 million in fiscal 2018, $108.0 million in fiscal 2019 and $126.0 million in fiscal 2020 to an un-named "third party provider for certain infrastructure services". Salesforce said in that filing that the deal was signed in April of 2016. Amazon Web Services and Salesforce did not announce the value of the deal in its announcement on Wednesday.