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AMAZON WILL PAY MICROSOFT $1 BILLION IN MAJOR CLOUD DEAL

By Usama Jawad
Published 22 hours ago


A report claims that Amazon is penning a $1 billion deal with Microsoft, which
will grant it a million Microsoft 365 licenses for its employees.


Readers like you help support XDA Developers. When you make a purchase using
links on our site, we may earn an affiliate commission. Read More.


KEY TAKEAWAYS

 * Amazon and Microsoft are expected to announce a major $1 billion cloud deal,
   with Amazon committing to pay Microsoft over five years for Microsoft 365
   licenses.
 * This deal will see Amazon transition from on-premises Office 365
   installations to cloud-based productivity tools.
 * The transition is expected to start in November and continue into early 2024,
   with Microsoft scaling its resources to meet the increased demand.

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Amazon and Microsoft have collaborated on various initiatives in the past.
Amazon has an Alexa app published in the Microsoft Store, and conversely,
Microsoft has also released some of its apps on the other's ecosystem. Most
notably, the two also partnered to officially support Android apps in Windows 11
back in 2021. Now, a report claims that the two firms are striking a major $1
billion cloud deal.



Citing internal sources and documents, Bloomberg says that Amazon has committed
to pay Microsoft $1 billion over a period of five years for one million
Microsoft 365 licenses. These licenses will purportedly be used by Amazon's
corporate employees and frontline workers. Currently, Amazon leverages
on-premises Office 365 installations, but the deal will see it migrate its
productivity tools to the cloud.

The transition to Microsoft 365 is expected to kick off this November, which is
also when the Redmond tech firm will integrate its AI Copilot capabilities in
its Office applications. However, the process will continue into early 2024.
According to the report, Microsoft is also scaling its resource allocation in
the cloud and security departments in order to meet the demand generated by this
deal.

In the past, Amazon had shied away from investing in the cloud versions of
Office applications because it didn't want to store its own data on a
competitor's cloud. It's unclear what has changed to encourage Amazon to now
move to Microsoft 365.



The deal serves as a major win for Microsoft and one that could pave the way for
future partnerships across other domains too. The positive sentiment generated
by the transaction was reflected in the stock market where Microsoft's share
price increased by 1% in after-hours trading. That said, it is important to note
that this is still a rumor for now, until Microsoft officially confirms such a
deal.


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Related Topics
 * Computing
 * Computing News
 * Microsoft 365
 * amazon
 * Microsoft

About The Author
Usama Jawad (97 Articles Published)


Usama is a freelance writer at XDA who has a decade of experience in covering
technology news across a variety of topics, with the primary area of focus being
anything related to Microsoft.
He also has a bachelor's degree in Computer Science and loves to play video
games and read books in his free time.


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