Amazon to use rival Microsoft’s cloud productivity service Microsoft 365, will pay $1b

Devesh Beri

Amazon Fire Tablet

Microsoft is about to secure a major new client for its Microsoft 365 cloud productivity service: Amazon. Amazon will be switching over from the old-fashioned Microsoft Office apps to the Microsoft 365 cloud-based subscription service, as reported by Reuters.

Amazon will pay Microsoft over $1 billion to license 1 million Microsoft 365 seats over five years. Amazon aims to start setting up the service in early November.

Microsoft is all set to launch Microsoft 365 Copilot for enterprise subscribers on November 1. The company has stated that Copilot will cost $30 per user per month when it is launched. This service will allow subscribers to automate a variety of tasks in Office applications.

There is currently no information about whether Copilot is included in the reported licensing agreement with Amazon. It’s worth noting that Amazon has recently hired one of Microsoft’s top executives, Panos Panay, who is set to take over as the head of Amazon’s devices team at the end of October.

It’s interesting to note that Amazon is switching to Microsoft 365 even though it has its cloud productivity suite, Amazon WorkSpaces. This suggests that Amazon believes that Microsoft 365 is a better product or at least a better fit for its needs.