Walmart shares closed lower Monday, ahead of confirmation the US grocer has entered a five-year tech partnership with Microsoft. Walmart is set to utilise Microsoft’s wide range of cloud solutions to help expand and improve its digital capabilities and offerings.
Walmart shares ended the US Monday trading session 0.07% lower at $87.64. Meanwhile Microsoft shares closed 0.49% in the red at $104.91. Walmart stocks are currently also lower in pre-market trade, while Microsoft shares are a little higher.
Walmart announces new tech deal
The strategic partnership between the two US giants will exist for five years. During that time Walmart will migrate much of its online usage to the Microsoft Azure and Microsoft 365 cloud service.
This shows a higher level of commitment from the US grocer, as it already uses some Microsoft services for its online requirements.
The move comes as Walmart ramps up its ambitions to capture a bigger market share of the online shopping audience.
“Walmart’s commitment to technology is centred around creating incredibly convenient ways for customers to shop and empowering associates to do their best work,” said Doug McMillon, Walmart CEO.
“Walmart is a people led, tech empowered company, and we’re excited about what this technology partnership will bring for our customers and associates,” McMillon added.
Microsoft cloud services to power Walmart
Walmart said it won’t just be using Microsoft’s cloud services to run its servers on. It is also set to make use of the US tech giant’s AI capabilities to try and develop new experiences for its online shoppers and users.
“Walmart is a pioneering retailer, committed to empowering its employees and delivering the best experience for its customers wherever they are,” said Microsoft CEO Satya Nadella.
“The world’s leading companies run on our cloud, and I’m thrilled to partner with Walmart to accelerate their digital transformation with Microsoft Azure and Microsoft 365,” Nadella added.