The cost of building and operating a new Microsoft cloud computing service could top $2 billion, according to a report from an independent analyst firm.
The report, by RBC Capital Markets, said that a $1.8 billion price tag for the service is roughly the same as Microsoft’s acquisition of Oracle in 2014, when it was rumored the deal could cost more than $5 billion.
Microsoft has been steadily rolling out new cloud computing services and its cloud computing business has been gaining traction in the marketplace, especially as a result of Microsoft’s partnership with Google.
The deal is expected to be announced at a news conference at 1 p.m.
The company said it expects to launch a new cloud platform in the second quarter, and that the service will provide new computing capabilities and support a new generation of cloud computing.
Microsoft’s cloud computing division is already the largest in the U.S., with about 1.2 million employees.