Amazon is allegedly close to signing a contract worth over $1 billion with Microsoft to subscribe to one million Microsoft 365 licenses for its corporate and frontline workers.
As reported by Business Insider this week, who cited internal documents and a source close to the deal, Microsoft is preparing to bring on Amazon as a customer for its Microsoft 365 cloud productivity software.
Amazon reportedly utilises Microsoft's local, on-premises Microsoft Office software currently, but this new partnership with Microsoft signals a transition towards incorporating the latter's 365 cloud productivity tools. The source close to Amazon cited by Business Insider claimed that it hesitated to adopt Microsoft 365 software because it didn't want to store its data on Microsoft servers.
Business Insider's source added that Microsoft expects to begin establishing the cloud systems for Amazon in early November, while the software transition for employees is scheduled for early next year.
The source stated that the scale of the partnership demands complex processes to manage a seamless transition. These measures encompass precise allocation of cloud resources and more staff on deck across Microsoft Office and security organisations so that the demand for the services is adequately addressed.
Microsoft's shares grew by almost one percent following the report.
