According to reports, Amazon and Microsoft are about to sign a significant cloud agreement in which Amazon would pay $1 billion over the course of five years for one million Microsoft 365 licenses. With this move, Amazon is moving away from Office 365 installations on-site and toward cloud-based productivity solutions. Microsoft plans to scale resources to meet higher demand throughout the transition, which is expected to start in November and go until early 2024.
Although Amazon has previously been wary of storing its data on a rival company’s cloud, this agreement is a major victory for Microsoft and may pave the way for more partnerships. Despite being based on rumors, Microsoft has not yet provided an official confirmation for this information. In after-hours trading, Microsoft’s share price increased by 1% as a result of this news.
