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Microsoft and Walmart have jointly created a new ‘cloud factory’ that exists in the Innovation Hub of Walmart in Texas. The cloud plant is part of a strategic partnership that the two companies announced in July, reports Silicon Angle.

As part of the partnership, Walmart will be using cloud service Azure and Microsoft 365 services for the next five years. They are also working on new projects on machine learning, artificial intelligence and data platforms. With this cooperation the two parties hope to be able to compete well with Amazon.

Now there is also a cloud factory, which should open at the beginning of next year. A team of 30 employees from both companies will be working there. Among other things, the factory will have to help Walmart move thousands of internal business applications to Azure. The engineers also work together to create new, cloud-native applications. They use Microsoft’s cognitive services, chatbot and machine learning tools.


Amazon is the largest competitor of both companies. With Amazon Web Services, Amazon is well ahead when it comes to offering enterprise cloud services. With Walmart there is competition in online retail and the $13.7 billion acquisition of Whole Foods last year.

Among other things, Microsoft has deployed a strategy to compete with AWS, positioning itself as the best cloud platform for developers of the industrial Internet and smart building applications. Walmart’s vast network of stores and warehouses provide good testing opportunities for new technologies, products and services in this area. For example, Walmart has already installed IoT sensors in its cooling systems in 5,000 American stores. These are used to ensure that the temperature remains at the desired point.

Microsoft is also working on a concept for physical shops without cash registers. It would be talking to Walmart about shaping the technology together.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.