Microsoft is on the brink of becoming a major provider of its cloud-based 365 productivity suite to Amazon.com, marking a significant shift in their traditionally competitive relationship. This agreement, valued at over $1 billion, represents a notable collaboration between the two tech giants.
Reports indicate that Amazon has committed a substantial sum for a contract extending beyond five years, with plans to acquire over a million licenses for Microsoft 365.
Upon this announcement, Microsoft’s stock price saw an increase of approximately 1% during extended trading, though the company refrained from providing an official statement. Amazon, for its part, has remained silent and has not responded to requests from Reuters seeking clarification.
According to the report, Amazon intends to commence the integration of these new systems in early November, coinciding with Microsoft’s launch of an enhanced 365 suite featuring new AI capabilities. The complete transition for Amazon’s workforce is scheduled for early 2024, according to an insider cited in the report.
Executing a deal of this magnitude necessitates thorough planning and the allocation of significant cloud resources. An insider confirmed that teams within Microsoft’s Office and security divisions are already gearing up to meet the increased demand.
Amazon had previously avoided the cloud-based version of Microsoft’s 365 offerings due to concerns about storing data on a competitor’s cloud platform, as disclosed by an insider familiar with Amazon’s internal operations.
