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.
Amazon uses a local, on-premise version of Microsoft's Office products but plans to move to Microsoft's 365 suite of cloud based productivity tools, the person explained.
That's around the time when Microsoft releases a new version of its 365 suite of applications with new AI capabilities.
A person familiar with Amazon's operations said the company stayed off of the cloud version of Microsoft's 365 products because they didn't previously want to save anything on a competitor's cloud.
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