Amazon and Microsoft in $1 Billion Megadeal for Cloud Productivity
In a surprising turn of events, tech giants Microsoft and Amazon are reportedly finalizing a megadeal worth approximately $1 billion. The deal entails Amazon acquiring a whopping 550,000 Microsoft 365 E5 licenses for its corporate workers, along with one million Microsoft 365 F5 licenses for its frontline employees.
Currently, Amazon relies on traditional, on-premises Microsoft Office software. However, the company is now preparing to make a transition to cloud-based productivity tools. The transition is set to commence this month and is expected to be completed by early 2024.
According to sources, Amazon initially hesitated to utilize Microsoft’s cloud computing services due to concerns about storing its data on a competitor’s cloud. However, this deal signifies a change of heart for the e-commerce giant.
Is this the end of a long-standing rivalry?
The rivalry between Microsoft and Amazon, particularly in the cloud space, has been well-documented. Amazon’s decision to embrace Microsoft’s cloud services could potentially bring an end to their intense competition. While Microsoft has not officially confirmed the deal, a company spokesperson mentioned that the reported value of the M365 licenses may be exaggerated.
Given the magnitude of this agreement, it is possible that both companies reached an arrangement that includes some form of discount for Amazon.
What are your thoughts on Amazon’s shift towards using Microsoft’s cloud services? Let us know in the comments!
Microsoft 365 Personal | From $70/year
Microsoft 365 Personal includes the Office suite and 1TB of OneDrive storage. It enables users to work across multiple devices, such as Windows, macOS, iOS, and Android. Additionally, it offers various apps and services like Editor, Microsoft Forms, and Microsoft Teams.View Deal