Microsoft to Onboard Amazon as a Customer for its Office Products

According to Insider, Microsoft is preparing to add Amazon.com as a customer for its 365 cloud productivity tools in a $1 billion agreement, citing an internal document and a person familiar with the situation. According to the source, the e-commerce giant has committed the sum for more than five years to obtain more than one million Microsoft 365 license seats.

Microsoft declined to comment despite its shares rising roughly 1% in extended trade following the news. Amazon did not respond to a request for comment from Reuters. According to the article, Amazon will begin implementing the new systems in early November, and the corporation now employs a local, on-premise version of Microsoft's Office products.

Microsoft Corporation is a multinational technology company based in Redmond, Washington. The Windows operating system, the Microsoft 365 suite of office programs, and the Edge web browser are among Microsoft's most well-known software products. Its major hardware products are the Xbox video game consoles and the Microsoft Surface family of touchscreen PCs. Microsoft was rated 14th in the 2022 Fortune 500 list of the top firms in the United States by total revenue.

Amazon is a multinational technology firm based in the United States that specializes in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It has been referred to as "one of the most influential economic and cultural forces in the world" and is widely regarded as one of the world's most valuable brands.