It’s become clear over the last several quarters that Amazon Web Services is signing longer-term cloud computing deals with big enterprise companies, and according to a report it just landed around $1 billion in revenue over the next five years from two strategically important customers.
Bloomberg reported Tuesday that SAP and Symantec each signed five-year contracts with AWS worth $500 million, which gives AWS a nice boost ahead of its earnings report due out later this month. Both companies were already running workloads on AWS, but the deal represented an expansion of their presence on the cloud leader’s infrastructure as well as a win over Microsoft Azure, according to an internal memo viewed by Bloomberg.
Given that AWS is on track to do more than $20 billion in revenue in 2018, at around $100 million a year, the deals aren’t game-changers. But SAP and Symantec have their own big enterprise computing businesses, and moving more of those workloads onto AWS is another vote of confidence that some of the world’s most important tech companies are willing to trust AWS with their livelihoods.
Both Symantec, which sells enterprise security software, and SAP, a high-performance database company, are hedging their cloud bets with workloads on Microsoft and other clouds. Yet even as multicloud strategies continue to become more popular, AWS has been able to maintain a steady and sizable share of multicloud spending: SAP is spending 70 percent of its cloud budget with AWS, while Symantec is spending 80 percent, according to the report.