Boeing will split a huge cloud computing project among the three biggest service providers — Amazon.com, Microsoft and Google parent Alphabet, the aircraft maker said on Wednesday. Boeing stock fell as the U.S. stock market retreated amid worries over rising interest rates.
Chicago-based Boeing didn't disclose financial terms of the multiyear agreements with Amazon Web Services, Google and Microsoft's Azure unit. The Information reported last year that Amazon Web Services, Google Cloud and Microsoft's Azure were competing for a contract worth more than $1 billion over several years, Bloomberg said.
The aircraft maker aims to move software applications from on-premise infrastructure to servers hosted in remote data centers operated by the cloud giants.
Many companies are recognizing the advantages of using multiple cloud computing providers. This gives them more bargaining power in negotiating pricing and flexibility in moving business workloads.
Boeing Stock Down 9% in 2022
AWS, a fast-growing business of Amazon stock, is the biggest cloud computing company. AWS prefers deals that make it the sole cloud service provider. Microsoft and Google tend to be more open to multivendor agreements, analysts say.
Companies in many industries, such as financial services, prefer a hybrid cloud model. There, they use both their own on-premise data centers and remote cloud services.
Boeing stock fell 2.2% to close at 178.72 on the stock market today amid a broad market sell-off.
Amazon stock slipped 3.2% to 3,175.12. Google stock dipped 2.9% to 2,730.96. Also, Microsoft stock retreated 3.7% to 299.50.
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