Microsoft and Amazon's massive $1 billion deal could change the cloud computing market

Microsoft and Amazon, two of the tech industry’s biggest rivals, are reportedly close to signing a multi-billion dollar deal for Microsoft 365, which could potentially change the course of the cloud computing market.

The news arrived not too long after Redmond officials wrapped up its long-lasting saga of the Activision Blizzard acquisition. According to a report by Insider, Amazon has agreed to pay Microsoft over $1 billion over the next five years to license Microsoft 365 for over one million of its employees.

The deal would be a major win for Microsoft, as it would bring on one of the world’s largest and most successful companies as a customer for its cloud productivity suite.

Microsoft 365 includes a wide range of tools and services, such as Word, Excel, PowerPoint, Outlook, and Teams.

For Amazon, the move would represent a significant shift in its approach to productivity software. The company has traditionally used its own in-house products, such as WorkDocs and Chime. 

However, it appears that Amazon is now willing to rely on Microsoft for its productivity needs. The source also told the publication that Amazon has not used Microsoft 365 in the past because it did not want to give money to a competitor.