According to internal documents from Amazon, the company is preparing to enter into a contract to use Microsoft 365 cloud services with Microsoft. The value of the deal that Amazon is paying is over $1 billion, for a period of over 5 years.
Previously, Amazon used Microsoft Office software installed on their computers or on-premise. However, in this project, Amazon wants to switch to using Microsoft 365 on the cloud. They are expected to start testing in November and aim to transition all employees to Microsoft 365 by early 2024.
This is a small matter because Amazon and Microsoft are major competitors in the cloud services market. In the past, Amazon has avoided using Microsoft 365 because they viewed it as a way for their company’s data to be stored on their competitor’s cloud.
Amazon itself has solutions for productivity tasks, such as WorkDocs for document storage or Chime for online meetings. However, these solutions are not popular in the market among external customers, including within Amazon itself. Both Amazon and Microsoft have refused to comment on the report.
TLDR: Amazon is planning to sign a contract with Microsoft to use their Microsoft 365 cloud services, for a value of over $1 billion for a period of 5 years. They aim to transition all employees to Microsoft 365 by early 2024. This move is interesting considering Amazon’s previous avoidance of using Microsoft 365 due to competition in the cloud services market. Both companies have declined to comment on the report.