On Tuesday, Microsoft opened a new tab, saying that Coca-Cola opened it and signed a $1.1 billion five-year deal to use its cloud computing and artificial intelligence services.
This partnership, centered on a $1.1 billion investment in Microsoft Cloud, highlights Coca-Cola's transition in its business operations to prioritize digitalization.
The partnership's integration will improve Microsoft Azure and Azure OpenAI Service to enhance various business functions, including marketing, manufacturing, and customer service.
Coca-Cola hopes to promote innovation and expedite operations with cutting-edge technology, including Microsoft 365 Copilot and other tools to increase workplace efficiency.
In 2020, Coca-Cola agreed to sign a five-year deal worth $250 million to use Microsoft's cloud and business software.
According to the two companies, Coca-Cola would test Microsoft's Copilot capabilities to assess how the technologies increase beverage makers' productivity.
Among its various capabilities, Copilot is an AI assistant that can help summarize lengthy email exchanges and create slide decks for business presentations.
"This new agreement builds on the success of Coca-Cola's partnership strategy with Microsoft, showing our commitment to ongoing digital transformation," John Murphy, President and CFO of The Coca-Cola Company, said.
Coca-Cola has transitioned its apps to Microsoft Azure, and its main independent bottling partners have enthusiastically embraced this move. This change reveals the beverage giant's dedication to integrating cutting-edge technology at the center of its business plan.
As part of the agreement revealed on Wednesday, Coca-Cola will use more traditional Microsoft software, like Dynamics365, which sales professionals use to compete against Salesforce (CRM.N).
Executives from both companies are excited about how the collaboration could make Coca-Cola a more flexible, effective, and creative company.
