Amazon and Microsoft To Enter Key Billion-Dollar Cloud Deal
Amazon is expected to start its transition from November 2023, leading into early 2024.
- Amazon is set to become a major client for Microsoft, with a massive billion-dollar deal with licenses for Microsoft 365 cloud-based productivity suites.
- Through this deal, Amazon will transition from on-premise Office 365 setups to cloud-based alternatives.
Amazon has entered a massive deal with Microsoft to license the Microsoft 365 cloud productivity suite for over a million frontline and corporate employees. The $1 billion deal is a surprisingly rare development for both companies, who have traditionally been competitors.
The deal will run for five years, and the Microsoft 365 licenses will be critical for Amazon’s migration of productivity tools from on-premise installations to the cloud. The migration will start in November 2023 and is expected to run till early 2024. In turn, Microsoft will work on scaling its security and cloud departments to meet the deal’s requirements.
The deal is a positive development, especially for Microsoft, driving up chances of further collaborations in other domains. Consequently, Microsoft’s share price rose by 1% after the news came out.
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While the current deal is for five years, Amazon is expected to extend the time frame beyond this. The ecommerce leader will also likely acquire more than the initial million licenses for its rapidly expanding operations.
Amazon, until now, has been wary of investing in Microsoft’s cloud offerings, as it did not want its data on a competitor platform. It is not yet clear what change has pushed the company to adopt Microsoft 365.
What do you think is next for Microsoft’s 365 Suite? Let us know your thoughts on LinkedIn, X, or Facebook. We’d love to hear from you!
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