Coca-Cola cloud brings a golden harvest for Infosys

In an era where digital transformation is like a viral sensation, beverage giant Coca-Cola has taken a remarkable sprint into the future. The company signed a strategic partnership in April to use Microsoft’s cloud and Artificial Intelligence (AI) services. Microsoft will also help it align its core technology strategy systemwide, enable the adoption of leading-edge technology, and foster innovation and productivity globally.

So why are we talking about it in September?

Recent media reports quoting a regulatory disclosure by Coca-Cola Euro Pacific Partners, a subsidiary of beverage giant The Coca-Cola Company, indicates that the company has committed EUR 167 million to Microsoft for Azure cloud migration services over six years, with an additional EUR 25 million for Infosys as a supporting partner.

“As AI becomes an indispensable component of large-scale cloud deployments, Indian IT firms can capitalise on the growing global demand for cloud migration services.”- PRABHU RAM, Vice President – Industry Research Group, CyberMedia Research

Besides, the regulatory filings with the US Securities and Exchange Commission point out that Infosys is set to earn over USD 27 million from its involvement in the EuroPacific geography alone. This also means that Infosys will accumulate an astonishing revenue of USD 100 million if the company extends its services to other regions covered in the global deal.

The deal underlines the growing role of Indian IT service providers, such as Infosys, becoming significant players and contributors in the global market chain by helping them with strategy consultation, cloud migration and integration, and detailed digital transformation roadmaps.

Infosys and Microsoft: Long-term Partners

Infosys and Microsoft have been collaborating for over 15 years, and the two expanded their partnership in February 2023 to accelerate cloud transformation journeys worldwide.

According to the Infosys Cloud Radar, enterprises can potentially earn up to USD 414 billion in net new profits annually through effective cloud adoption. The study also underscores that cloud adoption offers the dual advantage of faster time-to-market and the discovery of new revenue streams, resulting in yearly profit growth of up to 11.2%.

The Coca-Cola deal further cements this ongoing collaboration, where Infosys is bringing its Cobalt Cloud offerings to integrate seamlessly with Microsoft’s Azure platform. The joint expertise in enterprise solutions, application modernisation, data analytics, and Artificial Intelligence (AI) will lay a solid foundation for cloud-powered transformation across Coca-Cola’s business operations.

Coca-Cola’s Technology Ambitions

Like Infosys, Coca-Cola’s partnership with Microsoft is not a recent development; their relationship dates back to the early 2000s, with collaborations across various technological fronts, such as digital transformation, cloud migration, the Internet of Things solutions, AI, and Machine Learning implementations.

Notably, in 2020, Coca-Cola signed a USD 250 million agreement with Microsoft to standardise its business operations on Microsoft’s cloud, deliver rich new digital experiences, and provide innovative solutions to modernise the company’s engagement with employees and customers.

The initiative also aimed to use Azure, Dynamics 365, and Microsoft 365 to enable Coca-Cola to gain new insights from data across the enterprise, provide a 360-degree view of the business, and enhance customer and employee experiences.

The recent USD 1.1 billion five-year contract further builds on the earlier contract to utilise Microsoft Cloud and its generative AI capabilities. It will help Coca-Cola explore innovative use cases with Azure OpenAI Service across various business functions and test the potential of Copilot for Microsoft 365 to enhance workplace productivity.

Microsoft and Infosys, with expertise in enterprise solutions and AI, will enable Coca-Cola to drive cloud-powered transformation across business operations.

The company has migrated all its applications to Microsoft Azure, and most major independent bottling partners have followed suit. According to a joint press release by Microsoft and Coca-Cola, the latter has been exploring generative AI for nearly a year and has already leveraged Azure OpenAI Service to reimagine everything from marketing to manufacturing and supply chain and beyond.

The press release also indicated that Coca-Cola is exploring the use of generative AI-powered digital assistants on Azure OpenAI Service to help employees improve customer experiences, streamline operations, foster innovation, gain a competitive advantage, boost efficiency, and unleash new growth opportunities.

“The agreement reflects a significant step in advancing Coca-Cola’s digital transformation, focused on providing expanded access to Microsoft’s cloud and AI platforms—as well as solutions such as Microsoft 365, Power BI, Dynamics 365, Defender and Fabric—to enhance efficiency and scalability while fostering innovation across the system,” it stated.

Why is it Important for Indian IT companies?

Experts and industry observers point out that this partnership is not just about Coca-Cola and Microsoft; it is a testament to the growing strategic importance of Indian IT service providers like Infosys in the global digital transformation landscape. Indian IT companies have long been at the forefront of supporting global enterprises in scaling and streamlining their digital transformation efforts.

Explains Prabhu Ram, Vice President – Industry Research Group at CyberMedia Research: “Indian IT service providers like Infosys can significantly enhance their competitiveness in securing large-scale cloud migration contracts with global enterprises by forming strategic partnerships with hyper scalers like Microsoft.”

He adds that with AI becoming an indispensable component of large-scale cloud deployments, Indian IT firms can strategically position themselves to capitalise on the growing demand for cloud migration services.

The partnership between Infosys and Microsoft indicates how Indian IT companies are securing substantial contracts from global enterprises. Pareekh Jain, CEO of EIIRTrend, added, “The increasing integration of Artificial Intelligence into these cloud deals signifies a shift towards AI-driven business transformation.”

Infosys’ role in the Coca-Cola-Microsoft deal extends beyond just technical support. It involves migrating Coca-Cola’s applications and data to Microsoft Azure, managing and supporting the Azure environment, and integrating Azure with Coca-Cola’s existing systems and applications. This role highlights the critical importance of Indian IT expertise in driving global digital transformation initiatives, ensuring that companies like Coca-Cola can focus on their core business while seamlessly transitioning to the cloud.

By Shibul Pavithran

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