What you need to know
- Microsoft and Amazon are reportedly in the middle of a megadeal worth around $1 billion.
- The deal will help Amazon acquire 550,000 Microsoft 365 E5 licenses for its corporate employees and one million Microsoft 365 F5 licenses for its frontline employees.
- Amazon employees already use traditional, on-premises Microsoft Office software, but the company is now preparing to transition to cloud-based productivity tools.
- The transition is expected to begin this month and is expected to be completed in early 2024.
- According to a source, Amazon was reluctant to use Microsoft’s cloud computing services because the company did not want to store its data in the competitor’s cloud.
Last month, we learned that Amazon and Microsoft are in the middle of a “mega-deal” that will see the former receive about $1 billion over five years to acquire one million Microsoft 365 licenses for its corporate and frontline workers Front to secure rollers.
Amazon already uses traditional, on-premises Microsoft Office software, but it appears the company is now ready to move to cloud-based productivity tools. According to a Business Insider spot, the transition is expected to begin this month and last until early 2024.
The initial report didn’t elaborate on the details of the deal other than mentioning that it involved one million Microsoft 365 licenses. However, new details about the deal are emerging. According to people close to the deal, Amazon will receive 550,000 Microsoft 365 E5 licenses for its corporate employees and one million Microsoft 365 F5 licenses for its frontline workers.
Is this the end of a long-standing rivalry?
It’s no secret that Microsoft and Amazon are major competitors, especially in the cloud space. We learned that Amazon ditched Microsoft’s cloud productivity tools because the company didn’t want to store its data and information in its competitor’s cloud.
The company’s change of heart could finally end the rivalry between the two companies. Microsoft has not yet confirmed the deals, although a company spokesperson noted that M365 sticker prices “significantly overstate the value of the deal.”
Given the magnitude of the deal, there is a possibility that both companies have an agreement in place that gives Amazon some sort of “discount.”
What do you think about Amazon switching gears and using Microsoft’s cloud services? Let us know in the comments.
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Source : www.windowscentral.com