The merger between Amazon and the new Microsoft is expected to give the online retail giant a controlling stake in the $500 trillion market for cloud computing services, according to people familiar with the matter.
Amazon and Microsoft are expected to finalize the deal next week and begin talks to finalizing the deal within the next month, the people said.
The new arrangement could create the largest deal in history to buy or merge two of the largest companies in the world, which has prompted criticism from the Trump administration and some lawmakers, as well as lawmakers in both parties.
Trump has been a fierce critic of Amazon and has threatened to withhold billions of dollars in federal funds for the companies.
Amazon CEO Jeff Bezos is seen at the company’s headquarters in Seattle on March 7, 2019.
(Photo: Brendan Smialowski, AFP/Getty Images)The new deal is being built around the same core technologies as Amazon’s cloud business, which includes its popular Amazon Web Services and its popular Web Services for Business (SaaS) businesses, which offer a more traditional, enterprise-style business model for customers.
The deal could also help Amazon build out its cloud business beyond the traditional cloud business into a broad portfolio of businesses that it can sell to customers at lower prices, the sources said.
A person familiar with Microsoft’s plans confirmed the terms of the deal but said Microsoft was not expected to enter into a formal partnership with Amazon.
Amazon is currently focused on cloud computing and the technology behind its Amazon Web Service and its SaaS businesses, the source said.
Microsoft has said it will sell the cloud business to Microsoft and then become a standalone entity that owns the remaining software and hardware used in its cloud computing businesses.
It will be Microsoft’s new cloud business that is owned by Microsoft.
Microsoft’s cloud services have been a cornerstone of its business for more than a decade, and have generated billions of cloud computing dollars annually.
But the deal would give Amazon a significant piece of the pie in the Microsoft cloud business.
Amazon already owns significant hardware, software and cloud computing hardware, and has been developing its own hardware.
The acquisition of Microsoft’s cloud businesses could give Amazon an even bigger slice of the Microsoft pie, according the people.
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