PepsiCo and Keurig Dr Pepper have signed long-term cloud contracts with Microsoft and Google Cloud respectively to improve their data operations and have a more agile IT infrastructure.

PepsiCo announced a five-year partnership that establishes Microsoft as a preferred cloud provider to accelerate infrastructure, ERP and data systems consolidation and modernization.

As part of the agreement, PepsiCo will install Microsoft 365 and Microsoft Teams to all of PepsiCo’s 270,000 employees. In addition, PepsiCo will employ Microsoft’s cloud product, Azure, to gain greater agility and have the ability to derive new insights from its collected data corporation wide. These insights will help fuel product innovations, customer intimacy and sustainability goals.

“As a global leader in convenient food and beverages, our commitment to the timely delivery of PepsiCo products has never been more important,” says PepsiCo CIO Seth Cohen. “Through our partnership with Microsoft, we aim to improve service delivery capabilities to meet rising demand for essential goods while driving new innovations to make our operations and workforce stronger and more resilient for the future.”

“Our partnership with PepsiCo applies Azure and AI capabilities to the ever-changing supply chain and retail landscape in new and exciting ways,” says Deb Cupp, Microsoft CVP enterprise commercial business. “By migrating PepsiCo’s global data estate and SAP landscapes to Azure, we’ll be able to help PepsiCo drive efficiencies from farmer to consumer. We’re also pleased to deliver Microsoft 365 to PepsiCo’s associates worldwide as part of this partnership. Mobile communication and collaboration for PepsiCo’s workforce will be one of the keys to realizing the value Microsoft brings.”

Keurig Dr Pepper entered a multiyear agreement with Google Cloud, which allows the beverage company to host its data footprint on Google Cloud. Keurig Dr Pepper is retiring two data centers, housing more than 1,000 physical servers, and plans to migrate to virtual machines running on Google Cloud by the end of the year. The move supports Keurig Dr Pepper’s digital transformation to an integrated, agile IT operations infrastructure.

The beverage company sought a forward-looking technology provider that offers stability and resilience. Keurig Dr Pepper chose to migrate all its major technology applications to Google Cloud for the reasons above, and respected Google Cloud’s reputation for innovation and security.

“Google Cloud is a true partner that gives us the stability and flexibility to support critical business applications needed to drive innovation and ensure business continuity,” says John Gigerich, SVP and CIO for Keurig Dr Pepper. “The migration to Google Cloud has been seamless and was a key project in our merger integration and modernization efforts as Keurig Dr Pepper. We look forward to exploring additional partnership opportunities with Google in the future.”

Keurig Dr Pepper used Google Cloud’s Live Migration service, which enables enterprises to move seamlessly virtual servers from one physical machine to another with minimal disruption. For applications like SAP, where even a few minutes of downtime can cost tens of thousands of dollars in lost revenue, using Live Migration is critical.