Amazon Web Services (AWS) and DXC Technology have agreed to build “a new multibillion-dollar DXC-AWS Integrated Practice,” the companies announced today. The arrangement will focus on helping DXC Technology clients migrate their existing IT environments and applications to AWS.

You might ask: "Who is DXC Technology?" Well, it’s an IT services company with nearly 6,000 clients from a diverse array of industries across 70 countries. The company says that it offers technology independence, global talent, and an extensive partner network. DXC is already a premier partner in the AWS Partner Network and is an audited AWS Managed Service Provider. It also holds multiple AWS migration competencies.

With the new arrangement, AWS gets access to DXC enterprises that may want to migrate to the AWS public cloud. The collaboration will focus on application migration and industry-specific services that use DXC’s intellectual property running on AWS. The multiyear agreement between the two companies also encompasses joint development, marketing, sales, and delivery of AWS solutions.

"For many years, successful enterprises have relied on DXC's expertise to manage their IT," said AWS CEO Andy Jassy in a statement. "This agreement represents a commitment for both DXC and AWS to make it much easier to enable long-time and newer DXC clients to take advantage of the cloud.”

The DXC-AWS Integrated Practice will initially focus on:

  • Managed security and compliance services for AWS
  • Dedicated VMware Cloud on AWS migration solution
  • Analytics services on AWS
  • Application services for AWS
  • Mission critical support for SAP on AWS

DXC Technology reported its first quarter of fiscal 2019 earnings yesterday. In a research note, BMO Capital Markets analyst Keith Bachman said DXC's stock seems to have stalled, and investors are evaluating the company’s ability to drive earnings through further cost reduction and positive top-line growth.

But Bachman added, “We think the new Amazon partnership, as well as relationships with other leaders such as Azure, is a means to grow without incurring meaningful incremental operating or capital costs.”