News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | Amazon Embraces Microsoft 365 as Apple Doubles Down on AI

According to reports, Apple is preparing to bring AI to its devices. The company has been working on generative AI efforts, including the development of a large language model called Ajax. Apple’s senior vice presidents, John Giannandrea and Craig Federighi, are leading various AI projects with a focus on improving Siri, developing an AI-infused iOS, and infusing AI into Apple applications. Apple aims to invest around $1 billion per year in this endeavor.  The updates are expected to resemble features seen in existing AI-infused applications. The company is also considering a combined approach of on-device processing and cloud-based operations for deploying generative AI.

Amazon is reportedly set to become a Microsoft 365 customer in a landmark $1 billion deal. The agreement will see Amazon using Microsoft’s 365 productivity suite, with a commitment to spending over $1 billion and taking on one million licenses ‘seats.’ The shift to Microsoft 365 is expected to begin in November and will coincide with the release of an updated version of 365 with generative AI tools. This deal marks a significant pivot for Amazon, as it previously relied on its own in-house productivity tools and on-prem software.

Why do we care?

Managed Services Providers (MSPs) should anticipate a new set of services and support needs tied to Apple’s ecosystem, especially considering the focus on Siri and iOS. The hybrid approach of on-device and cloud-based operations could also introduce complexities that MSPs may need to navigate.  There’s also insight into a rare misstep by Apple – and how all hands on deck are pushing to catch up.  onMSPs should take note of this massive validation of Microsoft 365 and cloud services – Amazon is now using Microsoft’s suite. 

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