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Amazon’s Billion-Dollar Investment in Microsoft 365 Licenses

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An internal document has disclosed that Amazon is preparing to invest over $1 billion in acquiring Microsoft 365 licenses.

According to Business Insider, Amazon’s current workforce relies on an on-premise version of Microsoft Office, but they have a significant transition in the works towards Microsoft’s cloud-based 365 suite. This transition is of substantial scale, as Amazon requires more than one million seat licenses.

The confidential document, in combination with insights from an undisclosed source familiar with the situation, has unveiled Amazon’s plan to shift from on-premise applications to cloud-based 365 apps. This transition is scheduled to kick off in November, with an initial setup phase, followed by Amazon employees fully migrating to the cloud-based suite in early 2024.

Amazon is budgeting over $1 billion for this transition, spread across a five-year period. The rationale behind this strategic shift remains unclear, particularly given Amazon’s existing document collaboration and sharing solution (WorkDocs) and video chat solution (Chime). It’s notable that by adopting Microsoft 365, Amazon will be relying on Microsoft’s cloud infrastructure instead of its own AWS (Amazon Web Services).

On the Microsoft front, they’ve been diligently enhancing the 365 suite over the past year. Updates are now automated within a four-second timeframe, a new default theme has been introduced, and the suite is poised to integrate an “everyday AI companion” known as Copilot.



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