Amazon Web Services concluded a deal with Salesforce worth $400 million as the two companies tightened their business relationship.

The California based cloud computing company signed a deal with AWS, expanding its services globally last Wednesday. Marc Benioff, chairman and CEO, Sales force expressed his excitement with the recently concluded business transaction with Amazon.

“We are excited to expand our strategic relationship with Amazon as our preferred public cloud infrastructure provider,” Mr. Benioff said.

Based on the report of the Synergy Research Group, Amazon Web Services accounted 31 percent of the cloud market while Microsoft had only 9 percent. Salesforce and other companies such as IBM and Google had 4 percent respectively.


Andy Jassy, CEO Amazon Web Services, said that leading enterprises and ISVs around the world are migrating their business-critical applications to the AWS Cloud to be more agile and efficient.

Salesforce unnamed infrastructure services

A tech analyst explained that Salesforces core CRM product runs on an internal stack in its own data centers using Oracle databases.

“Salesforce has acquired other technologies which use AWS most notably the public platform-as-a-service called Heroku. A commitment of this scale may well involve a gradual shift for Salesforce to diversify the stack of its core business, but this is likely to take a long time,” the analyst said further.

Meanwhile, based on the filing of Salesforce with the Securities and Exchange Commission, it entered t with a third party provider fro certain infrastructure services for a period of four years in April 2016. Further, the agreement provides that the Salesforce will pay $70.0 million in fiscal 2017, $96.0 million in fiscal 2018, $108.0 million in  fiscal 2019 and $126.0 million in fiscal 2020.

AWS new AI service

Elsewhere, AWS was said to be secretly creating a new AI service, according to people familiar with the situation. The said service aims to help the customers in utilizing artificial intelligence software on Amazon’s cloud.


Key features of the said service include powerful apps which can be used in speech transcription and pattern recognition. Apart from this, the company’s cloud section is preparing for more machine learning capabilities for its subscribers. Thus, the AI framework could be on its way to compete with Ternsor Flow and other companies which offers AI.

The spokesperson  of Amazon, revealed that the company will launch computers with eight graphical processing units to be created by NVIDIA Corporation.

Amazon debuts in India

In other news, Amazon will officially introduce membership Prime Service in India next month. The e-commerce giant was believed to be discussing the leading content creators to support Prime services in India.

"Its been in the works for a while and they are looking to launch it soon, given the kind of focus they have on the Indian market and being able to close in on Flipkart. Amazon Prime could be big advantage to attract more consumers as users in the US have been using it regularly," the person familiar with the development said.

Shares of Amazon changed hands lower at $714.03, down by 0.13 percent 0.40 with a market capitalization of 340.17 billion. Currently, the stock has a price earnings ratio of 294.19