We have committed to spend $2 billion with Google Cloud over the next five yearsIn reality, it's probably more like $200M, $300M, $400M, $500M, $600M
> On January 30, 2017, we entered into the Google Cloud Platform License Agreement. Under the agreement, we were granted a license to access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference.
Being frugal until you hit the $400MM doesn't matter anymore...
That's a lot for the first year. Not much scaling at all. Why would they structure it like this?