Walmart bets on Microsoft Azure, Microsoft 365 in strategic cloud partnership

Well you didn't think Walmart was going to partner with Amazon Web Services did you?

Walmart is betting on Microsoft Azure as its preferred cloud provider with plans to use the software giant's Internet of things and artificial intelligence tools.

The Walmart win for Microsoft comes as Amazon Web Services New York Summit kicks off and the e-commerce giant comes off a rocky Prime Day launch. See: WTH Amazon!? Prime Day goes to the dogs | Amazon's Prime Day from hell: Website issues a rare black eye for e-commerce giant

Walmart is also a partner with Google in some areas such as smart home e-commerce. Hell would freeze over before Walmart used Amazon Web Services.

Under the partnership, Walmart will use Azure across its infrastructure. Walmart CEO Doug McMillon said Microsoft will help the retailer optimize pricing and use machine learning. Microsoft 365 is also included in the deal.

What is Microsoft 365? Microsoft's most important subscription bundle, explained

Walmart is already a Microsoft customer on many fronts, but this partnership revolves around machine learning, AI and data management. These technologies will be used for internal and external applications. For Microsoft, the Walmart deal is another big deal. Microsoft and GE also outlined an IoT partnership.

The five-year deal means Walmart will standardize on Microsoft's cloud and move applications to the cloud. Walmart.com and Samsclub.com will also move to Azure. Walmart will convert its applications to be cloud native.

On the IoT front, Walmart will use Azure's tools for everything from energy consumption to the supply chain.

And finally, Walmart said it will roll out Microsoft 365 in phases to boost collaboration.

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