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FedEx and Microsoft work together to deliver packages, which widens the gap with Amazon



A FedEx employee, wearing a protective mask and gloves, loads boxes into a truck amid the coronavirus pandemic on April 28, 2020 in New York City.

Alexi Rosenfeld | Getty Images

Microsoft and FedEx announced a multi-year partnership on Monday that the couple believes could help “transform” trade through FedEx’s logistics network and Microsoft’s cloud.

The two said that their first service, FedEx Surround, will deliver real-time supply chain and delivery analytics to help businesses potentially ship goods better.

The companies did not disclose the full nature of the partnership, including the amount FedEx pays Microsoft to use its Azure cloud technology. However, the partnership is yet another example of Amazon rivals opting for Microsoft̵

7;s cloud offering over Amazon Web Services (AWS), the cloud computing leader.

Amazon and FedEx have become increasingly competitive with each other as Amazon invests heavily in building its own shipping network. FedEx announced last year that it would terminate its basic supply contract with Amazon. Amazon still offers a lot of business to FedEx, but many believe that Amazon will eventually deliver everything itself without the help of third parties.

The Microsoft and FedEx offerings, which will be available later this year, will collect data using FedEx’s IoT technology and analyze it through the Microsoft service suite. This could help predict problems that would slow deployment, e.g. B. Severe weather or problems with the release. This could allow companies to change routes to deliver goods faster.

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