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Microsoft (NASDAQ:MSFT) looks like it has nailed a $1B megadeal with Amazon (NASDAQ:AMZN), Insider reported.
The Bill Gates-founded company is set to add the Jeff Bezos-founded tech giant as a customer of its 365 cloud tools, the website reported, citing an internal document and a person familiar with the matter.
Amazon (AMZN) purchased more than 1M seats for the 365 suite and committed $1B to the deal over 5 years, according to the document.
Amazon and Microsoft did not immediately respond to a request for comment from Seeking Alpha.
Amazon (AMZN) is already a customer of localized Microsoft (MSFT) Office products, though it has some of its own comparable software products. This would shift the company to cloud-based tools for corporate employees and frontline workers starting next month around when Microsoft (MSFT) releases its newest version of 365 with artificial intelligence capabilities.
Amazon (AMZN) and Microsoft (MSFT) compete in web services and are generally considered to be rivals, especially in the cloud computing space.
