In a striking move, Microsoft (MSFT) is reportedly on the brink of securing Amazon (AMZN) as a customer for its 365 cloud productivity tools. This potential deal, which is said to be valued over $1 billion, surfaced in a report from Insider. It indicates that Amazon has dedicated this amount for a duration surpassing five years, aiming to lock in over one million Microsoft 365 licenses. In the aftermath of the report's release, Microsoft's shares witnessed a nearly 1% uptick during extended trading, though the tech titan chose not to comment. Amazon, likewise, has remained silent, not reacting to Reuters' inquiries.
Amazon is anticipated to commence the integration of these new systems in early November. Interestingly, Amazon's existing infrastructure relies on an on-premises version of Microsoft's Office products. As a result of this potential "megadeal", the e-commerce behemoth is poised to transition from the conventional Microsoft Office software to Microsoft's more modern cloud productivity suite. This shift is noteworthy, especially considering Amazon's past hesitance towards embracing Microsoft's cloud technologies, primarily due to the competitive dynamic between Microsoft's Azure and Amazon's AWS.
Both companies, headquartered not far from each other, have a history marked by competition, particularly in the cloud computing domain. This makes the prospective deal all the more significant. Given the weight of this collaboration, it will be intriguing to observe how the dynamics between these two tech juggernauts evolve.
