Microsoft and the London Stock Exchange have formed a partnership to offer cloud services to the exchange’s customers.
Key Details
- Microsoft has purchased a 4% stake in the London Stock Exchange Group (LSEG) in a deal between the two companies.
- The deal is a 10-year agreement to offer Microsoft’s cloud services to the stock exchange in order to improve data and analytics.
- As part of the deal, LSEG committed to spend a minimum of $2.8 billion on Microsoft’s cloud services over the next decade.
- The partnership “creates attractive revenue growth opportunities for both companies,” says LSEG CEO David Schwimmer.
Why it’s news
Microsoft and the London Stock Exchange Group have partnered together to bring Microsoft’s cloud services to the exchange’s customers.
The partnership was created to boost the exchange’s data platform with improved data and analytics from the Microsoft cloud.
“We are delighted to welcome Microsoft as a shareholder,” says LSEG CEO David Schwimmer. “Bringing together our leading data sets, analytics, and global customer base with Microsoft’s comprehensive and trusted cloud services and global reach creates attractive revenue growth opportunities for both companies.”
LSEG agreed to spend a minimum of $2.8 billion (£2.3 billion) on Microsoft’s cloud services over the next decade and is expected to cost the company between around $306 million (£250 million) between 2023 and 2025.
Although the company is doing some heavy spending, Microsoft estimates that the partnership could potentially bring LSEG an additional $5 billion in revenue over the next decade.
Also as part of the partnership the two companies are also planning to create new data services using Microsoft Azure, Microsoft Teams, and Microsoft’s artificial intelligence.