Amazon is set to sign a billion-dollar deal...with Microsoft 365

Microsoft 365
(Image credit: Microsoft/GTS)

Amazon is preparing to sign a deal worth more than $1 billion with its key rival Microsoft to supply the ecommerce giant with office software.

A recent Insider report, citing an internal document and an anonymous person familiar with the matter claims Amazon will pay for Microsoft 365 licenses for a million of its corporate and frontline workers.

Although the two remain major competitors in numerous markets, especially cloud, Amazon is already a user of Microsoft’s software tools.

Amazon becoming a major Microsoft 365 customer

The deal will see Amazon migrate from traditionally installed copies of Microsoft Office to Redmond’s cloud-based subscription, likely in a bid to keep workers supplied with the most up-to-date versions of software in a more cost-effective way.

Such a deal between the two companies may seem unlikely given that AWS and Azure go head-to-head in the cloud market, but Amazon doesn’t have its own office software.

Technically, WorkDocs and Chime go part of the way to offering what Microsoft offers, but to nowhere near the same measure of success.

Insider’s source believes that Amazon could begin setting up licenses in November, with a full move planned for early 2024. It’s unclear whether Amazon workers will benefit from the full generative AI capabilities of Microsoft 365 Copilot.

Following Insider’s report, Microsoft shares rose 1% in after-hours trading.

This megadeal will give Microsoft a huge boost, not that it needs one. The company has been under fire recently, in various markets, about its unfair dominance.

Various companies and bodies have launched complaints about anticompetitive practices, which have sparked investigations by antitrust bodies.

Redmond has only just removed Teams from its Microsoft 365 bundle, following a complaint from Slack and dissatisfaction from other video conferencing software providers.

More from TechRadar Pro

TOPICS
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

Read more
Microsoft Teams
Microsoft Office - and Teams - might be about to get cheaper for an awkward reason
Microsoft 365 product logos on an orange background
Best Microsoft Office and Microsoft 365 deals in January 2025
Digital clouds against a blue background.
UK government says Microsoft and AWS unfairly dominate the cloud market
Microsoft Copilot
Some customers are about to see a huge rise in their Microsoft 365 subscriptions
Microsoft
Microsoft hits back against UK competition lawsuits, slams AWS and Google once again
Amazon Web Services CEO Andy Jassy
Amazon wants to spend $100 billion this year for ‘once in a lifetime' AI opportunity
Latest in Pro
Cyber-security
The definitive guide to credential collaboration
Eurocom Raptor X18
At $15,000, this massive 256GB RAM laptop makes Apple's MacBook Pro look affordable, tiny and very, very slow
Squarespace
Build a website for less with 10% off Squarespace subscriptions
An American flag flying outside the US Capitol building against a blue sky
The FCC is creating a security council to bolster US defenses against cyberattacks
UK Prime Minister Sir Kier Starmer
UK PM says AI should soon replace civil servants
Image depicting hands typing on a keyboard, with phishing hooks holding files, passwords and credit cards.
Microsoft warns about a new phishing campaign impersonating Booking.com
Latest in News
Google Gemini Flash 2.0 Images
I tried Gemini's new AI image generation tool - here are 5 ways to get the best art from Google's Flash 2.0
An image of the Samsung Galaxy S25 Ultra from a hands-on event
Samsung Galaxy S26 Ultra could resurrect an intriguing camera feature
Eurocom Raptor X18
At $15,000, this massive 256GB RAM laptop makes Apple's MacBook Pro look affordable, tiny and very, very slow
Cristin Milioti in Black Mirror season 7
Netflix launches trailer for Black Mirror season 7, giving us a look at its first-ever sequel episode and an unexpected returning character
A graphic of the PC Gaming Show
Get ready for a bounty of PC games on June 8, as the PC Gaming show is back
A close up of The Daily podcast from Pocket Casts' web page
‘Podcasting shouldn’t be locked behind walled gardens’: Pocket Casts slams Spotify and makes its web player free to all