Amazon has reportedly delayed its deployment of Microsoft 365 following a Russia-linked cyberattack where threat actors were believed to have accessed some employees’ email accounts.

The deal, announced in October 2023, saw Amazon commit to a $1 billion spend over a five-year period to get access to Microsoft 365 applications like Word, Excel and Outlook for 1.5 million of its employees.

Amazon has asked Microsoft to make some changes to its software to protect against unauthorized access, including more detailed user activity tracking within the apps.

The delay follows Russian hacker group Midnight Blizzard’s breach of Microsoft’s systems, which the company disclosed in January 2024. Amazon Chief Information Security Officer CJ Moses said (via Bloomberg): “At that time still, Microsoft wasn’t able to tell us if they had gotten the [hackers] out of their environment.”

Moses added: “We wanted to make sure that everything was logged, and that we had access to that logging in near-real time.”

The CISO reportedly gave Microsoft Security EVP Charlie Bell, who is handily an ex-Amazon engineering executive, a list of requests several months ago, and engineers from both companies are said to have been working together in an unlikely collaboration to address Amazon’s concerns.

Moreover, the delay reflects growing concern surrounding the security of cloud-based tools amid rising cyber threats, particularly as nations like Russia and China increase retaliation against Western restrictions like US chip sanctions.

Up until now, Amazon’s usage of Microsoft products has mostly revolved around installed copies of Office, rather than cloud-based and connected subscriptions.

Although some progress is believed to have been made, Amazon is yet to announce a new deployment timeline, however the company’s CISO has confirmed that the deal is unlikely to bew off: “We believe we’re in a good place to start redeployment next year.”

There has been no news of any regulatory action or approval process regarding the massive deal, but both Amazon and Microsoft have been treading carefully recently after facing numerous antitrust investigations and allegations of monopolistic behaviour.