Microsoft 365 Secures Major Client: Amazon
In an unexpected turn of events, Microsoft is reportedly on the verge of landing a significant new client for its Microsoft 365 cloud productivity service. And the client in question happens to be none other than its rival, Amazon.
According to a report by Business Insider, which has reviewed a document detailing the deal, Amazon is set to transition from its traditional Microsoft Office apps to the Microsoft 365 cloud-based subscription service. The agreement is said to involve Amazon paying over $1 billion over the next five years to license more than one million Microsoft 365 seats.
This means that Microsoft 365 will be utilized by a wide range of Amazon employees, from frontline workers to top executives. The report suggests that Amazon plans to begin implementing the new Microsoft service in early November.
If these reports are accurate, this would be a significant triumph for Microsoft in the enterprise space. Previously, Amazon had been hesitant to adopt Microsoft’s cloud services due to both companies being major players in the cloud service market, with Microsoft Azure competing against Amazon Web Services.
Interestingly, this news comes at a time when Microsoft is gearing up to launch Microsoft 365 Copilot for enterprise subscribers. Just a few weeks ago, the company confirmed that the generative AI assistant will be available starting November 1.
Microsoft had previously announced that the service would cost $30 per user per month upon its launch. Subscribers will be able to automate various tasks within Office apps using Copilot, such as drafting documents in Word, composing emails in Outlook, or summarizing meetings in Teams. It remains unclear whether Copilot is included in the reported license agreement with Amazon.
In another twist, Amazon recently recruited one of Microsoft’s top executives. Panos Panay, who previously led Microsoft’s Windows and Surface team, is set to take over as the head of Amazon’s devices team by the end of October.
As Microsoft continues to make strides in the enterprise sector, securing Amazon as a major client for its Microsoft 365 cloud productivity service marks a significant milestone. The deal not only showcases Microsoft’s prowess but also highlights the evolving dynamics within the tech industry.