Twitter has reportedly started paying its Google Cloud bills with the support of its new CEO Linda Yaccarino, who negotiated a strategic deal with Google.
This would keep some essential tools of Twitter alive and running, which otherwise be inoperative if Google decides to cut its Cloud access. This comes a couple of weeks after the initial reports that Twitter is defaulting on its upcoming Google Cloud bill, which may kill some of Twitter’s internal tools.
Securing Access to Google Cloud
Not every company can run all its functions on its infrastructure, so they primarily outsource some that need a better platform to work. Twitter does the same with some of its internal tools – where the company runs its Smyte, a content moderation tool, on Google Cloud.
This outsourcing deal was made in 2018 with a $1 billion upfront fee and has been relatively helpful. But now, dumping Google Cloud access is one of the many cost-cutting measures of Elon Musk, who has been shaving Twitter in various means after the acquisition.
Well, this is a terrible idea, as Twitter has some of its critical internal tools running on Google Cloud.
As they’re nearing the risk of going offline, Twitter even tried to migrate all these services onto its servers – but that effort was “running behind schedule”, reported Platformer. Anyhow, a new report from Bloomberg states that Twitter has paid the Google Cloud bill, around $200-$300 million a year, to keep its services alive.
This was made with the help of Twitter’s new CEO Linda Yaccarino, who “helped get the relationship back on track.” Further, the two companies are reportedly negotiating a broader partnership to include advertising and Google’s use of Twitter’s paid API. We should see what these contracts lead up to.