Amazon and Microsoft to sign $1 billion ‘megadeal’ for cloud productivity, says internal document
Amazon embraces Microsoft’s 365 cloud productivity tools.
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What you need to know
Microsoft is reportedly getting ready to bring on Amazon as a customer for itsMicrosoft 365 cloud productivity software. If true, this would see thelong-standing rivalrybetween both companies end, or at least change quite a bit, as it transforms into a business partnership.
Per internal documents and a source familiar with the megadeal, Amazon will part with up to $1 billion within a span of five years to secure one million Microsoft 365 licenses for its corporate employees and workers with frontline roles within the corporation,as reported by Insider.
To this end, Amazon employees have used traditional, on-premises Microsoft Office software, but the megadeal with Microsoft is its first step toward transitioning to Microsoft’s 365 cloud productivity tools. A person with close affiliations with Amazon’s dealings disclosed that the company was previously reluctant to transition because it didn’t want to store its data on Microsoft’s cloud services.
The person familiar with this deal further indicated that Microsoft is expected to start setting up these new systems for Amazonas early as November, while the full transition for Amazon employees is expected to take place early next year.
Admittedly, this is no easy feat, given the scale of the corporation. The source revealed that the magnitude of this deal would require elaborate measures to facilitate a seamless and smooth transition, which includes proper allocation of cloud resources and more people on deck across Microsoft Office and security organizations to ensure that the high demand for the services is satisfied.
Amazon vs Microsoft 365 may soon change
Amazon’s AWS is relatively cost-friendly compared to Microsoft’s cloud-based productivity tools, but the latter is more popular across organizations and offers more variety. Given the magnitude of this deal, it’s a major win for Microsoft.
Neither of the companies has responded to confirm or deny the allegations. We’ll have to wait and see what happens in the next few months.
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Do you think the Microsoft and Amazon megadeal will pull through? Please share your thoughts with us in the comments.
Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You’ll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.
