Microsoft is preparing to bring on Amazon as a customer of its 365 cloud tools in a $1 billion megadeal, according to an internal document::Preparations for this huge cloud software deal mark a significant shift in the relationship between the two technology giants.
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Microsoft is preparing to bring on Amazon as a major customer of its 365 cloud productivity tools, a megadeal that would transform bitter rivals into business partners, according to an internal document and a person familiar with the situation.
The e-commerce giant has committed more than $1 billion over five years to secure more than one million Microsoft 365 license seats, according to the document, which was reviewed by Insider.
Groups within Microsoft’s Office and security organizations are starting to scale up to meet the demand, according to the person familiar.
One potential draw for Amazon is that employees would have alternatives to in-house products such as WorkDocs and Chime, which are not that popular.
Amazon has tried to offer cloud-based productivity tools to other business customers, but those services have not had huge uptake generally.
Contact reporter Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or email (astewart@insider.com).
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