Boeing goes to Amazon, Microsoft, Google for cloud mega-deal

Boeing Co. will hire the three largest cloud computing companies in the United States—Amazon.com Inc., Microsoft Corp. and Google, from Alphabet Inc.— to assist with a digital renewal aimed at bringing more tools to its aircraft designers and software developers.

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(Bloomberg) — Boeing Co. will hire the three largest cloud computing companies in the United States—Amazon.com Inc., Microsoft Corp. and Google, from Alphabet Inc.— to help with a digital renewal aimed at bringing more tools to its aircraft designers and software developers.

The

multi-year agreements aim to update the company's current hosting and maintenance system for software applications through a network of servers, which may be difficult to maintain, the Chicago-based manufacturer announced Wednesday to its employees. Boeing plans to move hundreds of applications to the cloud, where they will be stored and maintained in the data centers of technology giants.

The aircraft manufacturing titan will renew its technology to help address quality failures and production issues that increase the costs of developing new aircraft. Boeing will invest in tools such as digital twins — virtual replicas of real hardware — to model both the performance of its new aircraft concepts and the assembly lines that would build them.

“These partnerships will strengthen our ability to test a system—or an aircraft—hundreds of times using digital twin technology before it is implemented,” Susan Doniz, chief information officer at Boeing, said in a LinkedIn post.

Boeing did not disclose the financial terms of the new agreement. Last year, The Information had reported that Amazon Web Services, Google Cloud and Microsoft's Azure were competing for a multi-year contract valued at more than $1 billion.

The aeronautics firm is the latest major technology customer to divide its business among several cloud service providers, thus avoiding a centralized strategy promoted by Amazon. The company, which leads the cloud market, urges customers to bet everything on AWS. Microsoft and Google, the second and third US-based vendors, respectively, are advocating a “multicloud” strategy of the kind that Boeing is adopting.

Boeing has already worked with companies on a limited basis and will avoid disrupting existing cloud-compatible products by keeping all three on board, a spokeswoman said. While the manufacturer eliminated 600 jobs when it outsourced its information technology infrastructure to Dell Technologies Inc. last year, it does not plan to untie workers with the latest agreements.

Original Note:

Boeing Taps Amazon, Microsoft and Google for Cloud Mega-Deal

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