Microsoft and Tesco in eight-year collaboration tie up

Retail giant Tesco and tech behemoth Microsoft have penned a contract which will see the supermarket chain purchase plenty of collaboration software.

As Tesco has started growing globally, it has sought better collaboration services to ensure the company does not become too fragmented.

The deal with Microsoft will provide those services, with the SharePoint, Exchange and Lync technologies expected to provide immediate rewards.

"We have lots of colleagues in Tesco, doing lots of jobs all over the world," says Mike McNamara, group chief information officer (CIO) at Tesco.

"These technologies can help bring us together to share learning and expertise, views and opinions, thoughts and ideas."

Tesco will also be able to enjoy access to the Microsoft Services' Enterprise Strategy programme, which will offer advice to the retail firm on delivering projects.

"Tesco is one of the most innovative global retailers and this commitment confirms their position in the industry as a company that is focused on its customers, as well as driven by forward-thinking leaders," said Bill Gonzalez, general manager for the worldwide distribution and services sector at Microsoft.

At the time of publication, Microsoft had not confirmed how much the eight-year deal would be worth.

This kind of deal represents where Microsoft is successful. Its online services division, however, continues to leak money.

In the Redmond giant's recent quarterly results briefing, the division revealed its loss widened to $728 million from $688 million a year ago.