Microsoft and The Coca-Cola Co. announced a five-year $1.1 billion deal that includes Azure OpenAI, Microsoft 365 and apps including Power BI and Dynamics 365 as the beverage company rounds out its multi-cloud strategy.
The announcement is part of an emerging multi-cloud strategy at Coca-Cola. Amazon Web Services is also a provider at the company and its various partners and units. Coca-Cola is sprawling and has a bevy of publicly traded bottlers in its orbit (Coca-Cola European Partners, Coca-Cola Femsa and Coca-Cola Bottling Co.). In other words, Coca-Cola likely has more than one technology vendor in every category.
Coca-Cola's contract with Amazon is a global one that includes AWS, Prime and Amazon Ads, sources say. The Coca-Cola Co. has been an AWS customer since 2013 and continues to use multiple services.
Under the Microsoft partnership, Coca-Cola has made a $1.1 billion commitment that includes the following:
- Experiments with Azure OpenAI Services for generative AI use cases and testing for Copilot for Microsoft 365. Microsoft said Coca-Cola has been using Azure OpenAI Service for a year.
- Migration of applications to Microsoft Azure.
- Use of multiple Microsoft cloud applications and platforms.
Coca-Cola's initial partnership with Microsoft was worth $250 million in 2020.
Coca-Cola doesn't disclose its annual technology budget in its regulatory filings or the breakdown of its cloud spending. However, companies are starting to disclose the splits between cloud vendors. For instance, Equifax recently disclosed how it has split its spending between Google Cloud and AWS in recent years. We detailed the breakdown in our Equifax customer story and how it is approaching AI and data products.
