Amazon is set to sign a deal with Microsoft worth over $1 billion to supply the ecommerce giant with office software. According to a report from Insider, Amazon will pay for Microsoft 365 licenses for one million of its corporate and frontline workers. Despite being competitors in many markets, Amazon already uses Microsoft’s software tools.
The deal will involve Amazon transitioning from traditional installations of Microsoft Office to a cloud-based subscription, which will ensure that workers have access to the latest software versions in a more cost-effective manner. Although it may seem unlikely for Amazon and Microsoft to collaborate due to their competition in the cloud market, Amazon does not have its own office software. While Amazon’s WorkDocs and Chime offer similar features, they are not as successful as Microsoft’s offerings.
According to Insider’s source, Amazon could begin setting up licenses in November and complete the transition in early 2024. It is unclear whether Amazon workers will benefit from the full capabilities of Microsoft 365 Copilot’s generative AI.
Following the report, Microsoft’s shares rose by 1% in after-hours trading. This deal will provide a significant boost to Microsoft, although the company is already facing scrutiny for its dominance in various markets. Multiple companies and organizations have lodged complaints about Microsoft’s alleged anticompetitive practices, leading to investigations by antitrust bodies.
Recently, Microsoft removed Teams from its Microsoft 365 bundle due to a complaint from Slack and dissatisfaction from other video conferencing software providers.
