14 DAY TRIAL // Microsoft and Walmart have signed a five-year collaboration whose main purpose is to help the two companies take on Amazon.
Specifically, in a press release that you can find embedded below, Walmart explains that Microsoft would become the preferred and strategic cloud provider following the agreement, adding that Redmond’s cloud solutions would be adopted company-wide.
Microsoft Azure and Microsoft 365 would be deployed across the company, and furthermore, “Walmart and Microsoft engineers will collaborate on the assessment, development, and support phase of moving hundreds of existing applications to cloud native architectures.”
Part of Walmart.com and Samsclub.com would be migrated to Azure, and tools like Microsoft Workplace Analytics, Microsoft Stream, and Microsoft OneDrive will become available for Walmart employees.
Cloud, Microsoft’s growth engine
Walmart wants to use Microsoft technology to set up checkout-free grocery stores that would help it compete against Amazon Go. And yet, the company hasn’t mentioned Amazon in its press release, though Microsoft CEO Satya Nadella did say in an interview with Wall Street Journal that the “core” of the deal is taking on Amazon.
Needless to say, Nadella also praised the collaboration with Walmart, explaining that it’s well positioned to continue its growth using Microsoft’s cloud technology.
“Walmart is a pioneering retailer, committed to empowering its employees and delivering the best experience for its customers wherever they are,” said Satya Nadella, CEO of Microsoft. “The world’s leading companies run on our cloud, and I’m thrilled to partner with Walmart to accelerate their digital transformation with Microsoft Azure and Microsoft 365.”
Cloud services have become Microsoft’s main cash cow, and a partnership with Walmart is definitely a big win for the software company. Last quarter (FY18 Q3), Microsoft’s Intelligence Cloud unit increased revenue by 17 percent, reaching $7.9 billion. The Productivity and Business Processes also posted a 17 percent increase with $9 billion revenue.