Infosys is expected to generate more than $100 million as a key partner in Coca-Cola’s $1.1 billion cloud migration deal with Microsoft, according to sources familiar with the situation.
Documents filed with the U.S. Securities and Exchange Commission (SEC) indicate that the Indian IT giant will receive over $27 million from this deal for its services in the Euro Pacific region alone. Industry experts suggest that if Infosys is also involved in other regions, its total earnings from this global partnership between Coca-Cola and Microsoft could surpass $100 million.
Industry insiders note that IT service providers typically receive 15-20% of cloud migration contracts.
Queries sent to Infosys regarding the deal remained unanswered as of the time of publication. However, a regulatory filing this month by Coca-Cola Euro Pacific Partners PLC, a subsidiary of The Coca-Cola Company, confirmed, “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.”
Pareekh Jain, CEO of the EIIRTrend engineering insight platform, commented on the opportunity for Indian IT service providers in cloud and AI sectors. “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 expert in outsourcing. “This also shows that AI narrative has become an important part of large cloud deals.”
In April, Microsoft and Coca-Cola announced a five-year strategic partnership aimed at aligning Coca-Cola’s core technology strategy across its global operations. This partnership is designed to facilitate the adoption of cutting-edge technology and foster innovation and productivity worldwide.
As part of this collaboration, Coca-Cola committed $1.1 billion to Microsoft Cloud and its generative AI capabilities. The partnership also includes joint experimentation with new technologies like Azure OpenAI Service to develop innovative generative AI applications across various business functions. Notably, in September last year, Infosys announced a partnership with Microsoft to help enterprises adopt an AI-first approach, enabling the scaling of next-generation AI solutions to enhance operational efficiencies, drive revenue growth, and support business transformation.
Editorial Team
