Microsoft and NEC Expand Strategic Partnership to Boost Business Resiliency and Growth

Microsoft Corp. (Microsoft) and NEC Corporation (NEC; TSE: 6701) on Tuesday announced an expansion of their decades-long collaboration.

Conversation between Microsoft CEO Satya Nadella and NEC CEO Takayuki Morita

Through a new multi-year strategic partnership, the companies will leverage Microsoft Azure, Microsoft 365, NEC’s network and IT expertise, including 5G technologies, and each other’s AI and IoT solutions to help enterprise customers and the public sector across multiple markets and industries further accelerate their cloud adoption and digital transformation initiatives.

The partnership will see NEC adopt Microsoft Azure as its preferred cloud platform to deliver enhanced capabilities to drive sustained digitalization, help customers transform their business models, and build Digital Workplaces for the post-pandemic "new normal."

To accelerate NEC’s Digital Workplace innovation and workforce transformation, the companies will work together to migrate NEC’s on-premises IT environment to Azure and deploy Azure Virtual Desktop and other Azure services among the NEC Group’s 110,000 employees worldwide. This modernization builds on NEC’s existing Microsoft 365 platform and will enable a highly sustainable environment that is more secure and robust, accelerating cloud migration for NEC and its customers throughout the commercial and public sector in Japan and around the world.

The companies will work together to help improve digital services for public sector and enterprise customers through workplace and workforce transformation. Greater speed and lower-latency data connections will provide high-performance network experiences to create more efficient workplaces and empower employees to realize more personalized work styles for public sector as well as private sector customers.

Leveraging the assets of both companies, including Microsoft’s Intelligent Edge solutions and NEC’s private 5G networking technologies, the companies will work together to help customers across industries transform. In retail, for example, the two companies will work together to analyze customer transaction data in real time using AI to better understand buying patterns, improve operational efficiency and identify new market opportunities.

The combination of Azure and both companies’ AI and IoT technologies and expertise will enhance NEC’s customer experience through advanced solutions and enable more secure maintenance and operation of stores. In addition, NEC and Microsoft plan to explore network innovation initiatives built on Microsoft Azure for enterprise domains and specific industries.

Through the partnership, the companies will work together to double the number of digital-focused engineers within the NEC Group who are specialized in Microsoft technologies. This investment in technical capabilities and the expertise of NEC’s employees will help ensure customers’ digital transformation success, benefiting the market and society.

"As we’ve seen over the past year, digital adoption curves are accelerating across every industry and business function," said Satya Nadella, chairman and CEO, Microsoft. "Our strategic partnership with NEC brings together the power of Azure and Microsoft 365 with NEC’s services and infrastructure expertise to help public and private sector customers build resilience and transform during this era of rapid change."

"NEC is pleased to enter into this strategic collaboration with Microsoft Corp.," said Takayuki Morita, president and CEO of NEC Corporation. "With Microsoft’s trusted cloud and services, the experience that NEC has cultivated in its own systems, and both companies’ AI and IoT technologies, we will enable companies globally to use digital services that are safer and more secure than ever before as they progress with digital initiatives."

"The need for sustainable transformation to ensure business resiliency and growth has never been more important in the world and especially Japan," said Hitoshi Yoshida, president & CEO, Microsoft Japan. "Our partnership will help accelerate the industry’s cloud-based digital transformation and utilization of data migration and help Japan’s continued success globally, leading to greater economic and societal prosperity."

This announcement is based on a history of strong collaboration between Microsoft and NEC spanning more than 40 years.

www.nec.com

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