Infosys could earn over $100 mn from Coca-Cola's cloud deal with Microsoft

IT service providers like Infosys can capture around 15% to 20% of cloud migration deals

Infosys is poised to earn more than $100 million as a supporting partner in a $1.1 billion cloud migration deal between Coca-Cola and Microsoft, according to a report by The Economic Times. The deal, signed in April this year, highlights the growing role of Indian IT service providers in major global technology transformations.

Coca-Cola’s Azure cloud migration deal with Microsoft

In a regulatory disclosure, Coca-Cola Euro Pacific Partners PLC, a subsidiary of beverage giant The Coca-Cola Company, committed €167 million to Microsoft for Azure cloud migration services over six years, with an additional €25 million allocated to Infosys as a supporting partner. This partnership emphasises the strategic importance of cloud and artificial intelligence (AI) for Indian IT companies, especially when aligned with leading global technology firms like Microsoft.

The Coca-Cola-Microsoft partnership, announced in April, marks a five-year collaboration aimed at aligning Coca-Cola’s core technology strategy with innovations and fostering global productivity. As part of this collaboration, Coca-Cola committed $1.1 billion to Microsoft Cloud and its generative AI capabilities. The partnership is set to explore new technologies, including Azure OpenAI Service, to develop innovative AI use cases across various business functions.

Infosys poised to earn over $100 million

Regulatory filings with the US Securities and Exchange Commission (SEC) revealed that Infosys is set to earn over $27 million from its involvement in the Euro Pacific geography alone. The report further suggests that if Infosys extends its services to other regions covered in the global deal, its total earnings could easily exceed $100 million.

It added that IT service providers like Infosys typically capture around 15-20 per cent of cloud migration deals.

Infosys’s involvement in the deal follows its earlier announcement of a partnership with Microsoft in September last year to help enterprises adopt an AI-first approach.

As reported by Business Standard, Infosys has seen a significant boost in its market valuation, which surged by Rs 36,746.21 crore last week, bringing its total valuation to Rs 7,72,023.49 crore. This increase aligns with a broader positive trend in the Indian stock market – a sharp turn from last month when the IT major had been embroiled in tax issues with the Karnataka tax authorities.

In a separate development, Coca-Cola India is reportedly looking to sell a portion of its wholly-owned bottling business, Hindustan Coca-Cola Beverages. The company has approached the Bhartia family of Jubilant Group, Burman family of Dabur, Parekh family of Pidilite Industries, and the promoter family of Asian Paints to explore potential investments. Coca-Cola is seeking an investment of $800 million to $1 billion to expand its business in India.