Microsoft is poised to buy “approximately” 4% of London Stock Exchange Group (LSEG) as part of a new strategic partnership that will see LSEG’s data infrastructure migrated to Microsoft’s cloud host platform blue.
The financial data provider also claims that the Workspace platform will work with video conference platform team and Office Software suite 365.
in a Press release (opens in a new tab), LSEG revealed it had committed to a “minimum cloud-related spend” of $2.8bn (£2.3bn), with additional spending conditional on how Microsoft’s involvement would drive demand for LSEG’s financial analytics platform Workspace and “other related services” .
Microsoft and LSEG partnership
It’s not just about product migration, though.LSE Group wants to develop “new products and services in data and analytics” with Microsoft, following former Acquisition of Refinitiv (opens in a new tab)another provider of financial data, February 2021.
“This strategic partnership is an important milestone for LSEG in becoming the world’s leading financial market infrastructure and data business and will transform the experience for our clients,” said LSEG CEO David Schwimmer.
Satya Nadella, chairman and CEO of Microsoft, said: “Our partnership will bring together LSE Group’s industry leadership with the trust and breadth of Microsoft’s cloud, spanning Azure, artificial intelligenceand teams to build next-generation services that enable our clients to generate business insights [and] Automate complex and time-consuming processes. “
So while both companies are claiming that this partnership will change the way customers in the financial sector do business, it’s also shockingly about money.
“Combining our leading data sets, analytics and global customer base with Microsoft’s comprehensive and trusted cloud services and global reach creates attractive revenue growth opportunities for both companies,” Schwimmer continued.
LSEG estimates the cost of the partnership between 2023 and 2025 will be between £25-350m. Even so, and with a large minimum payout, it also believes its revenue will show “meaningful growth” over time as new jointly developed analytics products become available to customers.
Partnership with LSEG will continue to frustrate Microsoft in videoconferencing and Cooperation space as it continues to invest money to secure a monopoly.
November 2022, Slack Threats to file antitrust lawsuits The sheer dominance of Microsoft Teams in the EU, and the LSEG partnership is likely to push more users in the financial sector to switch to the service.