Amazon and Microsoft Reportedly Strike $1 Billion Megadeal
In a surprising turn of events, tech giants Microsoft and Amazon are said to be finalizing a megadeal worth approximately $1 billion. The agreement will see Amazon acquire a significant number of Microsoft 365 licenses for its employees.
Currently, Amazon relies on traditional, on-premises Microsoft Office software. However, the company is now preparing to make the switch to cloud-based productivity tools. The transition is set to commence this month and is expected to be completed by early 2024.
The deal includes 550,000 Microsoft 365 E5 licenses for Amazon’s corporate workers and one million Microsoft 365 F5 licenses for its frontline employees. This move marks a significant shift for Amazon, as it previously avoided using Microsoft’s cloud computing services due to concerns about storing data on a competitor’s cloud.
Could this Mark the End of a Long-standing Rivalry?
Microsoft and Amazon have long been fierce competitors, particularly in the cloud space. However, this deal suggests a potential resolution to their rivalry. While Microsoft has not confirmed the specifics of the agreement, a company spokesperson downplayed the reported value of the deal.
Given the magnitude of the deal, it is possible that both companies reached an agreement that offered Amazon some form of discount. Only time will tell if this collaboration will bring an end to their longstanding rivalry.
What are your thoughts on Amazon’s decision to utilize Microsoft’s cloud services? Share your opinions in the comments below.
Microsoft 365 Personal | From $70/year
Microsoft 365 Personal offers the Office suite and 1TB of OneDrive storage. It allows you to work across multiple devices, including Windows, macOS, iOS, and Android. Additionally, it provides access to various apps and services such as Editor, Microsoft Forms, and Microsoft Teams.View Deal