Telstra (ASX:TLS) collabs with Microsoft to drive Australia’s digital growth

Image Source: © Tktktk |


  • Telstra has extended its strategic partnership with Microsoft for further five years.
  • This deal is expected to benefit both companies by combining Microsoft’s technological capabilities and Telstra’s network.
  • Telstra shares were trading tad down on the ASX.

Australian telecommunications carrier, Telstra Corporation Limited (ASX:TLS) has garnered market’s attention today (27 July 2022) as the company has expanded its strategic partnership with Microsoft Corporation for another five years. This deal will drive growth and value for Australia and its customers.

At 12:09 PM AEST, Telstra shares were spotted trading 0.51% lower on the ASX from its previous close at AU$3.92 per share. Meanwhile, ASX 200 gained 0.20 points to 6,807.50.

Details of the Microsoft and Telstra deal

As per the media release by Microsoft, the strategic partnership with Telstra is one of the largest partnerships that Microsoft has entered with a telecom provider globally.

Under the partnership, the companies intend to accelerate the digital transformation across Australia by combining the technological capabilities of both companies.

Microsoft said in a statement that under the extended agreement, it would explore boosting its capacity on Asia-Pacific subsea cable network of Telstra. This would allow the company to achieve end-to-end connectivity in the telecommunication routes in the Asia-Pacific regions and Australia.

Image source: © Wolterk |

The company added that it is crucial to boost connectivity as the demand for remote working, online streaming, education and gaming has increased significantly over the past few years.

The media releases highlighted that the companies would collaborate to assist Telstra in migrating its IT to the public cloud. Microsoft Azure is the preferred cloud partner. Microsoft’s expertise would help Telstra achieve its T25 growth strategy ambition. Telstra aims to have around 90% of the applications on public cloud infrastructure by 2025.

Under the agreement, Telstra intends to offer new suites of offerings with Microsoft. These industry-based solutions are expected to help transform the way organisations look at cloud migration and hybrid working. Initially, the offerings would be focused on finance, utilities, agriculture, retail and manufacturing.

As a part of the agreement, the parties intend to collaborate on environmental, social and governance (ESG) areas to help Telstra meet its commitments and enhance sustainability outcomes in the nation.

Reportedly, in the coming months, the companies will work to finalise the scope of this strategic partnership.



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