Microsoft and London Stock Exchange Group announced a ten-year partnership on 12 December to move key LSEG data infrastructure to Azure and develop financial-data services together.
LSEG commits to at least US$2.8 billion in cloud-related spending over the agreement. Microsoft also plans to buy roughly 4% of LSEG from existing shareholders. The cloud commitment and share purchase are separate transactions.
Bringing data into the working day
Microsoft’s description of the roadmap starts with connecting LSEG Workspace to Teams, Excel and PowerPoint. A version of Workspace accessible within Microsoft 365 is planned for later. The companies also intend to develop cloud analytics and modeling services.
For finance professionals, the proposed integration would put data analysis and communication closer together. Microsoft describes financial models and visualizations using LSEG content in Excel, rather than treating the cloud migration as a standalone infrastructure project.
Microsoft estimates that the partnership and wider market opportunity could generate US$5 billion in additional revenue over ten years, including LSEG’s minimum spending commitment. That is Microsoft’s forecast, not a guaranteed contract total or money already earned.
A development programme, not an instant rollout
On the 12 December investor call, LSEG finance chief Anna Manz said product development would take a couple of years and that the expected revenue benefit would begin in 2025. She left the company’s short-term revenue-growth guidance unchanged.
The announcement says migration of regulated applications requires the relevant board and regulator approvals.
Thomson Reuters separately confirmed its planned share sale alongside Blackstone-affiliated funds. It expected closing in the first quarter of 2023, subject to antitrust and regulatory approvals, and approximately US$1 billion in gross proceeds for itself. That seller’s proceeds are distinct from LSEG’s cloud bill.
Illustration: Sulat. Logos: Microsoft, LSEG. Independent editorial illustration; no endorsement implied.
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