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Microsoft, Walgreens Sign Major Cloud Computing Pact

Microsoft (MSFT) and Walgreens Boots Alliance (WBA) on Tuesday announced a comprehensive strategic partnership. The agreement means that Walgreens uses Microsoft's cloud computing software and services and plans to innovate in health care.


Under the seven-year agreement, Microsoft will offer 380,000 plus Walgreens employees with Windows 10, Office 365 productivity software and other tools. Walgreens also plans to migrate the majority of its information technology infrastructure to Microsoft's Azure cloud computing and artificial intelligence platform.

Additionally, Microsoft and Walgreens will work for ways to transform the health care system to improve health outcomes and reduce overall costs. The companies have committed to a multi-year research and development investment. They will explore the establishment of joint innovation centers in key markets. This year, Walgreens will lead up to 12 "digital health hooks" in their stores. They are aimed at merchandising and selling selected healthcare-related machines and devices.

The deal is a big win for Microsoft over (AMZN), which has pushed into the health care center.

The Alliance's Goals to Improve Health Problems

"Better health outcomes while reducing the cost of care is a complex challenge that requires broad cooperation and a strong partnership between health and technology industries." Microsoft CEO Satya Nadella said in a press release. "Along with Walgreens Boots Alliance, we aim to deliver this promise by putting people at the heart of their health and well-being, combining the power of the Azure cloud and the AI ​​technology and Microsoft 365 with Walgreens Boots Alliance's deep expertise and commitment to helping communities Around the world, healthier and happier lives lead. "

Microsoft and Walgreens will also focus on enabling more customized health work experience from preventative self-need to chronic disease management.

Microsoft has recently been active in signing up for large customers for partnerships in cloud computing and artificial intelligence. Over the past six months, Redmond, Wash. -Based company announced agreements with grocery store chain Kroger (KR), payment giant Mastercard (MA) and measuring company ] Gap (GPS), oil and gas giant Royal Dutch Shell ] Walmart (WMT) and Conglomerate General Electric (GE).

The Microsoft stock rose 2.5%, close to 104.55, in the morning trading on the stock market today. Walgreens climbed 1.2%, near 71.50.


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