Published in Cloud

Microsoft sells 365 cloud service to Amazon

by on18 October 2023

Rivals partner up

Amazon is set to buy a cloud productivity service from its rival, Microsoft.

Business Insider reports that according to its sources and a review of the deal document, Amazon will switch from the old-fashioned Microsoft Office apps for its productivity software to the Microsoft 365 cloud-based subscription service. The article claims that Amazon will pay over $1 billion over the next five years to license over a million Microsoft 365 seats.

This means frontline Amazon workers and executives will use Microsoft 365. The story claims that Amazon will begin setting up for the new Microsoft service sometime in early November.

This is a massive win for Microsoft in the enterprise space as Amazon was reluctant to use Microsoft's cloud services because the two companies are major cloud service providers, with Microsoft Azure competing with Amazon Web Services.

Microsoft will soon launch Microsoft 365 Copilot for enterprise subscribers. A few weeks ago, the company confirmed that the generative AI assistant will be available on 1 November.

Microsoft previously stated that the service would cost $30 per user per month when it launches. It will allow its subscribers to automate several tasks in Office apps.

That includes Copilot writing drafts of documents in Word, emails for Outlook, or summarising meetings in Teams. It is unclear if Copilot is part of the Amazon deal.

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