(Reuters) – Microsoft is preparing to bring Amazon.com as a customer for its 365 cloud productivity tools in a deal worth over $1 billion, news site Insider reported on Tuesday, citing an internal document and a person familiar with the matter.
The e-commerce giant has committed the amount for over five years and to secure more than one million Microsoft 365 license seats, according to the report.
Microsoft, whose shares gained nearly 1% in extended trading following the report, and Amazon did not immediately respond to Reuters’ requests for comment.
Amazon is expected to start setting up the new systems in early November, the report said, adding that the company currently uses a local, on premise version of Microsoft’s Office products.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Sriraj Kalluvila)
Microsoft to Bring Amazon.com on Board as a Customer for its 365 Cloud Productivity Tools in a Deal Worth Over $1 Billion
According to a report by news site Insider, Microsoft is in the process of securing a deal with Amazon.com to become a customer for its 365 cloud productivity tools, in a deal estimated to be worth over $1 billion. The report cites an internal document and a source familiar with the matter and states that Amazon has committed to this amount for a period of over five years. The aim is to secure more than one million Microsoft 365 license seats for Amazon.
Following this report, Microsoft’s shares experienced a gain of nearly 1% in extended trading. However, both Microsoft and Amazon have yet to respond to requests for comment from Reuters.
The report also indicates that Amazon is expected to begin setting up the new systems in early November. Currently, the company utilizes a local, on-premise version of Microsoft’s Office products.
This move by Amazon to transition to Microsoft’s cloud productivity tools represents a significant business decision and could have far-reaching implications on the productivity tools market.
Microsoft’s suite of 365 cloud productivity tools offers various capabilities for businesses, including email, document management, collaboration features, and more. By adopting these tools, Amazon aims to enhance its productivity and optimize its operations.
As the transition is expected to occur in the coming weeks, industry observers will closely monitor the progress and assess the impact on both Microsoft and Amazon. This deal not only signifies a major financial commitment on the part of Amazon but also highlights the growing importance of cloud-based productivity tools in the modern business landscape.
Reporting by Yuvraj Malik in Bengaluru; Editing by Sriraj Kalluvila
