Microsoft has reportedly bought a 4% share in the London stock exchange. This is coming in as the cloud monopoly of Microsoft continues with significant acquisitions.
Microsoft Has Reportedly Bought A 4% Share in the London Stock Exchange
Tech Company Microsoft is set to acquire an approximate 4% stake in the London stock exchange group (LSEG) as part of an all-new strategic partnership that will see the data infrastructure of LSGE migrate to Azure, the cloud hosting platform of Microsoft.
The financial data provider also claims that the workspace platform will become ‘interoperable’ with video conferencing platform Teams as well as Suite 365, an office software.
The LSEG in a press release revealed that the company is committed to a “minimum cloud-related spend” of $2.8 billion (£2.3 billion), with additional spending conditional on how Microsoft’s involvement drives demand for LSEG’s financial analytics platform Workspace and “other related services”.
It’s however not all about product migration though as many people think. The LSEG hopes to develop “new products and services for data and analytics” alongside Microsoft, thus following the former’s purchase of Refinitiv which is yet another financial data provider back in February 2021.
What the CEO of LSEG and CEO of Microsoft Has To Say About the Partnership
“This strategic partnership is a significant milestone on the LSEG’s journey towards becoming the leading global financial markets infrastructure and data business, and will transform the experience for our customers,” CEO of LSEG, David Schwimmer said.
Chairman and CEO at Microsoft Satya Nadella said that “our partnership will bring together the industry leadership of the London Stock Exchange Group with the trust and breadth of the Microsoft Cloud, spanning Azure, AI, and Teams to build next-generation services that will empower our customers to generate business insights [and] automate complex and time-consuming processes.”
That being said, both companies are now claiming that the partnership will help to change the way customers of the financial sector conduct and carry out businesses, but also, its shock and horror regarding money.
“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,” Schwimmer added.
The Total Costs of the Partnership between the Companies between 2023-2025 Will Be Around £250 £350 Million
The LSEG estimates that the total costs of the partnership between the companies between 2023-2025 will be around £250 £350 million. And despite all of this and the mammoth minimum speed, it also believes that its revenue will be seeing a meaningful boost over time as the jointly developed analytics will become available to its customers.
The said partnership with the LSEG will continue to frustrate the competitors of Microsoft in the video conferencing and collaboration market as it now continues to spend more funds at securing a monopoly.
Slack in November 2022 Threatened an Antitrust Lawsuit against Microsoft
Slack in November 2022 threatened an antitrust lawsuit in the European Union over the sheer dominance of Microsoft Teams. It is most likely that the partnership with LSEG will drive even more users in the financial sector over to the service.