Amazon and Microsoft: neighbors and rivals
Azure against AWS, Microsoft against Amazon: This is the duel at the top in the cloud sector; the two companies from Seattle and the suburb of Redmond are more or less bitter rivals here. However, Microsoft has an advantage: It not only offers the cloud infrastructure, but also software that is interesting for both end users and companies.
What is meant here is above all Microsoft 365, i.e. the cloud-based software package that primarily contains office applications. And according to media reports, this is exactly where Amazon wants to take action. Specifically, this is about a “megadeal” worth a billion dollars.
According to a report by insider, citing internal documents and a person familiar with the matter, the online retailer has earmarked more than $1 billion over the next five years to secure more than a million Microsoft 365 licenses. Amazon is already relying on offline versions of Office; switching to the cloud version of the suite would probably tie the e-commerce giant to Microsoft for more than five years. The plans have not yet been confirmed, but the (technical) changeover is scheduled to begin in November – that would probably be the time for the deal to be announced.
For Microsoft, the deal would be of enormous importance not only financially, but also symbolically. This would give Amazon direct access to its competitor’s cloud infrastructure. According to Insider, another reason that Amazon waited to make the change was concerns about storing internal company data at its competitor.
- Amazon plans to order $1 billion worth of Microsoft productivity tools.
- Microsoft and Amazon are competitors in the cloud space, but could work together.
- Amazon is interested in Microsoft 365, a cloud-based software package.
- Amazon plans to secure over 1 million Microsoft 365 licenses over the next five years.
- Switching to the cloud version of Office could tie Amazon to Microsoft in the long term.
- The technical changeover is scheduled to begin in November, confirmation of the deal is pending.
- For Microsoft, the deal would be financially and symbolically significant because Amazon would have access to its cloud infrastructure.