Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 18 (Xinhua)-- Microsoft is about to acquire an important new customer for its Microsoft cloud product service, which also happens to be one of its technology competitors: Amazon, Business Insider reported, citing an internal document and a source familiar with the matter.

Amazon will move from traditional Microsoft Office applications to cloud-based Microsoft 365subscription services, the report said. Amazon will pay more than $1 billion (CTOnews.com Note: currently about 7.31 billion yuan) over the next five years to obtain more than 1 million Microsoft licenses, meaning Amazon's front-line employees to senior management will use Microsoft, the article said. Amazon plans to start preparing for a new Microsoft service in early November, the report said.

If the report is true, this is a huge victory for Microsoft in the enterprise world. According to the report, Amazon was reluctant to use Microsoft's cloud services because both companies are major cloud service providers, and Microsoft Azure competes with Amazon Amazon Web Services.

The report comes as Microsoft prepares to launch Microsoft 365 Copilot services for enterprise subscribers. A few weeks ago, the company confirmed that the generative artificial intelligence assistant would be launched on November 1.

Microsoft has previously said that the service, which costs $30 per user per month when it is launched, will allow its subscribers to automate many tasks in the Office app, including Copilot writing drafts of documents in Word, email in Outlook, or summarizing meetings in Teams. It is not clear whether Copilot is included in the deal with Amazon.

Amazon also recently poached a key Microsoft executive, Panos Panay, who was the head of Microsoft's Windows and Surface team and will become head of Amazon's device team at the end of October.

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