Walmart knows that its biggest rival Amazon, so it is better to compete with the company run by the world’s richest person, Walmart is working with Microsoft.
Today, Walmart announced that it established a strategic partnership with Microsoft to “continue to accelerate Walmart’s digital transformation in the retail sector, empowerment of the employees and make shopping easier and faster for millions of customers all over the world.” What that means in reality is, Walmart is embracing Microsoft’s cloud services and the execution of digital activities by making full use of Microsoft Azure and Office 365.
The partnership agreement has a duration of five years, starting with a team of Walmart and Microsoft engineers work together to transition the retailer into the Microsoft ecosystem. Walmart has hundreds of existing applications that need to be migrated to Azure, so this team has its hands full.
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If you’re wondering how deep this partnership, Walmart is committed to building a complete Internet-of-Things-operation is performed on Azure, which cover everything from the management of the cooling systems in thousands of stores using machine learning to improve the company’s entire supply chain. Microsoft will ensure that everything runs as smoothly as possible in a bid to expand cooperation beyond the first five years.
An area where Amazon currently has a big lead over Walmart is in automated supermarkets and Amazon Going retail presence, which is only set to grow. Microsoft has a solution already, having already started with the work on the own automated store software and hardware solution. This certainly helped Walmart’s decision to sign with Microsoft for the long term.
This article originally appeared on PCMag.com.