Microsoft to welcome Amazon as client in landmark $1-billion deal: Report

Microsoft is poised to welcome Amazon.com as a significant client for its cloud-based 365 productivity suite, according to Business Insider. Valued at over $1 billion, the deal marks a milestone for the two tech giants, who have typically been strong competitors and seldom collaborated on this scale.

The report also cites that Amazon has committed a hefty sum for a time frame extending beyond five years. The e-commerce behemoth intends to acquire more than a million licences for Microsoft 365.

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After the announcement, Microsoft's share price increased by about 1% during extended trading while the firm declined to comment. Amazon is yet to make any official statement, refusing to react to Reuters' requests for clarity.

Amazon intends to begin integrating these new systems in early November, as per the report. Amazon is now using a local, on-site version of Microsoft Office products.

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New system to be installed in November

Amazon plans to begin installing new systems in early November, coinciding with Microsoft's release of an upgraded 365 suite with new AI capabilities. According to an insider who spoke to the publication, the full shift for Amazon's personnel is scheduled for early 2024.

Implementing a deal of this magnitude necessitates substantial planning and allocation of cloud resources. The insider verified to the publication that teams within Microsoft's Office and security groups are already ramping up operations to meet the rise in demand.

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Amazon previously shunned the cloud version of Microsoft's 365 offerings, citing apprehension about storing data on a competitor's cloud platform, an insider with knowledge of Amazon's internal workings told the publication. 

Read the original Business Insider report HERE.

(With Reuters report)