Boeing (BA) Expands Digital Footprint With These Key Cloud Giants

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Ollie Martin
Updated: 6 Apr 2022

Key points:

  • Boeing step up cloud-computing game with three industry giants; Google, Amazon and Microsoft
  • Company hopes to improve ‘global scalability and elasticity' through the new partnership
  • Financial details remain under wraps, will there still be one primary provider?

Cloud computing is quickly becoming one of the leading tech developments of recent years. We are seeing complete overhauls of traditional internet servers, data management, and online logistics for a seemingly all-in-one solution; the cloud.

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Leading tech companies were quick to the mark with cloud computing, understanding the critical needs of modern business to maximize the effectiveness of digital tools. Sometime last year, airline manufacturer Boeing (NYSE: BA) announced a bidding process for work on the company’s cloud computing; expanding further on an existing partnership with Microsoft formed back in 2016. 

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Microsoft, Amazon Web Services, and Google confidently stepped forward as prominent industry leaders; and rumors that the deal could be worth around $1B heated up the competition. One year on, Boeing has split the deal three ways; utilizing a comprehensive parapet of cloud technology rather than a singular selection; coining the term ‘multi-cloud partnership’.

The multi-faceted partnership will allow Boeing to – as put by Susan Doniz, Boeing CIO and Senior VP for information technology – focus on “global scalability and elasticity without having to predict, procure, maintain and pay for on-premises servers”. Increased back-testing through enhanced technology means increased aircraft reliability and efficiency of testing. 

The markets remained relatively quiet in response to the news, with Microsoft, Amazon, and Google failing to price the deal into current shares. This is simply down to a lack of financial details surrounding the partnership, hence investors are still curious as to how revenue will work with the new three-way split. It is unknown whether there will still be a primary provider, and if there is, it is yet to be publicized. It will be worth keeping an eye out for further details in the near future that might be more financially specific. 

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