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Microsoft (MSFT), Boeing (BA) Team Up for Digital Aviation

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In what can be seen as the coming together of two behemoths, Boeing Company (BA - Free Report) has selected Microsoft Corporation’s (MSFT - Free Report) Azure cloud services. Per the deal announced on Monday, Microsoft will help Boeing to transition to cloud-based aviation analytics.

Boeing and its AerData and Jeppesen subsidiaries’ cloud-based aviation analytics applications will integrate with Microsoft’s Azure that includes Internet of Things (IoT) and its Cortana Intelligence Suite.

The integration will help Boeing establish a centralized cloud-based system and streamline aviation data collection and analysis. It will also help to boost predictive maintenance and flight optimization efforts.

Besides providing additional capabilities, Microsoft will help Boeing sell its existing cloud-based software.

A Competitive Edge for Microsoft

The partnership will open up opportunities for the tech giant and help it to reach out to a wider industrial customer base. This is a big win for the company and a clear indication that Microsoft’s cloud services are gaining traction versus rivals such as Amazon.com, Inc. (AMZN - Free Report) , IBM Corp. (IBM - Free Report) , Alphabet and Alibaba in the cloud computing race.

Earlier, the company scored another important win as GeneralElectric Co. (GE - Free Report) agreed to integrate Azure IoT Suite, Cortana Intelligence Suite and Microsoft business applications with GE’s Predix software platform.

Boeing’s High-Flying Dreams

Boeing with its Amsterdam-based subsidiary AerData has already rolled out cloud-based aviation analytics applications and partnered with other platforms like Amazon.com and CenturyLink, Inc. (CTL - Free Report) .

Boeing wants its commercial and military services business to cross the $50 billion annual revenue mark by 2025 from $15 billion currently. It envisions developing a suite of applications to improve aircraft efficiency and reduce fuel consumption by around 10%.

Despite its earlier partnerships with Amazon and CenturyLink, Boeing decided to switch camps with its recent move, probably in a bid to strengthen its cloud efforts.

Currently, Microsoft is a Zacks Rank #3 (Hold) stock.

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