The five-year deal is one of the largest partnerships that Microsoft has established with another operator globally.
The companies aim to accelerate Australia’s digital transformation by combining Microsoft technology with Telstra’s network reach and technological capabilities.
“As the go-to partner for Microsoft in Australia, this expanded agreement will turbocharge how we deliver compelling, all-digital experiences,” said Andrew Penn, CEO of Telstra.
“The pervasiveness of technology in businesses today and its ability to transform their operations, improve productivity, reduce their environmental impact and meet evolving customer needs means there’s no one-size-fits all solution.”
The aim of the partnership will be to boost Microsoft’s connectivity and growth in Australia, with Microsoft becoming an anchor tenant on Telstra’s new ultra-fast intercity fibre network.
It will also drive Telstra’s ambition to have around 90% of its applications on public cloud infrastructure by 2025, which includes Microsoft Azure as a preferred cloud partner.
The increased collaboration means both companies will support hybrid ways of working and develop environmental, social and governance (ESG) initiatives.
“Digital technology is foundational to the resilience and differentiation of every organisation,” said Satya Nadella, chairman and CEO, Microsoft.
“Our partnership brings together Telstra’s leadership in network connectivity with the breadth and depth of the Microsoft Cloud to address key challenges, including hybrid work and sustainability, and support Australia’s growth.
