Microsoft's stock price rose 0.47% as the company detailed a multi-year, $2 billion deal with AT&T.
Under the agreement, the telecommunications behemoth will "migrate non-network infrastructure applications" to Microsoft's Azure cloud platform and "and provide much of its 268,000-employee workforce with robust cloud-based productivity and collaboration tools available with Microsoft 365," the companies said in a joint press release.
AT&T's stock price also saw a modest bump, rising 0.45% to $26.04.
The deal comes as Microsoft prepares to issues its quarterly earnings report on Thursday after the close, with sales from its Azure cloud computing unit becoming increasingly important to the company's bottom line.
Microsoft is now Amazon.com, Inc.'s (AMZN) largest competitor in the cloud computing sector, according to Zacks Investment Research, noting it is Microsoft's "expansion into cloud computing that helped drive the stock and growth in recent years." Alphabet's (GOOGL) Google is a distance third.
Amazon and Microsoft also said they are working together on edge computing initiatives, leveraging AT&T's 5G network. Both companies also recently tested an "edged computing-based tracking and detection system for drones," as well, they noted in the press release on the deal.
"We will apply the power of Azure and Microsoft 365 to transform the way AT&T's workforce collaborates and to shape the future of media and communications for people everywhere," said Satya Nadella, CEO of Microsoft.
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