Could Snapchat Have Saved Money By Building Its Own Cloud Infrastructure Instead Of Paying Google?

The first is that it affects the cost structure of their business. At scale, it is always cheaper to build and run your own core infrastructure. Cloud services have extended the runway of how long it’s a good idea to rely on them (it’s a very good idea during the early period when your growth and product-market fit are uncertain) but once you have hit critical mass and know you will always need a certain amount of sustained computing resources, it is cheaper to establish and run your own servers. This is especially important when your business is reliant on advertising to large numbers of users, so the per-user cost of your business (thus per-server cost) needs to be as low as possible in order to keep your business viable.