The beverage giant Coca-Cola inked a $1.1 billion cloud migration deal with Microsoft in April of this year, and as a supporting partner, Infosys might earn more than $100 million in revenue, according to sources with knowledge of the situation.
Only for the Euro Pacific region, the Indian IT major is expected to get approximately $27 million from this purchase, according to regulatory filings with the US Securities and Exchange Commission (SEC).
It is estimated by experts that Infosys will profit more than $100 million from the global agreement between Microsoft and Coca-Cola if it partners in other regions as well.
They stated that IT service providers receive between 15% and 20% of cloud migration agreements.
Before going to press, Infosys had not responded to any questions that were mailed to them.
In a regulatory filing this month, Coca-Cola Euro Pacific Partners PLC, a subsidiary of The Coca-Cola Company, said, “During the first half of 2024, the group made a commitment to TCCC (The Coca-Cola Company) to invest €167 million with Microsoft for Azure cloud migration services over a 6-year term. A further €25 million has been committed to Infosys, who will act as a supporting partner.”
According to Pareekh Jain, CEO of the engineering insight platform EIIRTrend, cloud computing and artificial intelligence (AI) present significant business potential for Indian IT service companies.
“This deal shows how by partnering with hyperscalers such as Microsoft, Indian IT service providers can win large cloud migration deals with global enterprises,” said Jain, who is an outsourcing expert. “This also shows that AI narrative has become an important part of large cloud deals.”
A five-year strategic relationship between Microsoft and Coca-Cola was launched in April of this year with the aim of enabling the adoption of cutting-edge technology, promoting innovation and productivity worldwide, and aligning Coca-Cola’s fundamental technology strategy systemwide.
Coca-Cola committed $1.1 billion to Microsoft Cloud and its generative AI capabilities as part of the agreement. Through their collaboration, the businesses declared that they will work together to test cutting-edge technologies, such as Azure OpenAI Service, in order to develop creative generative AI use cases for a range of business applications.
Recall that Infosys and Microsoft announced their partnership in September of last year, with the aim of assisting businesses in adopting an AI-first strategy to scale next-generation AI solutions that enhance operational efficiencies, spur revenue growth, and facilitate business transformation.
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