Microsoft in talks to sign on Amazon as client in landmark $1-billion deal: Report

Microsoft Corporation, headquartered in Redmond, Washington, is an American multinational technology company renowned for its diverse product portfolio. Notable among its offerings are the Windows line of operating systems, the Microsoft 365 suite that includes productivity applications, and the Edge web browser. On the hardware front, Microsoft boasts flagship products such as the Xbox video game consoles and the Microsoft Surface lineup, featuring touchscreen personal computers. In the 2022 Fortune 500 rankings, Microsoft secured the 14th position, reflecting its standing among the largest corporations in the United States by total revenue. As of 2022, Microsoft holds the distinction of being the world’s leading software maker in terms of revenue. Microsoft is acknowledged as one of the prominent Big Five American information technology companies, sharing this distinction with other major players such as Alphabet (the parent company of Google), Amazon, Apple, and Meta Platforms.


Microsoft is reportedly on the verge of securing as a significant client for its cloud-based 365 productivity suite, according to insights from Business Insider. The deal, valued at more than $1 billion, marks a noteworthy collaboration between the two tech giants, which have historically been recognized as strong competitors rather than collaborators on such a large scale. As per the report, Amazon has committed a substantial amount for a duration extending beyond five years and plans to obtain over a million licenses for Microsoft 365. Following this development, Microsoft’s share price saw an approximately 1% increase during extended trading, although the company refrained from providing any official comments. Amazon, too, has not issued a formal statement and has chosen not to respond to Reuters’ requests for clarification.

The report indicates that Amazon aims to initiate the integration of these new systems in early November. It is highlighted that Amazon is currently making use of a local, on-site version of Microsoft Office products. Amazon is poised to initiate the installation of new systems in early November, coinciding with Microsoft’s rollout of an upgraded 365 suite featuring advanced AI capabilities. According to an insider who shared details with the publication, the complete transition for Amazon’s workforce is slated for early 2024.

The execution of such a substantial deal requires thorough planning and the allocation of cloud resources. The insider affirmed to the publication that teams within Microsoft’s Office and security groups are already escalating their operations to meet the anticipated increase in demand. Notably, Amazon had previously steered clear of the cloud version of Microsoft’s 365 offerings, expressing reservations about storing data on a competitor’s cloud platform, as disclosed by an insider familiar with Amazon’s internal operations.