Bharti Airtel shares gained over 2% in Wednesday's trade following reports the telecom company will sign a strategic alliance with Amazon Web Services (AWS), the cloud services subsidiary of e-commerce giant Amazon.com, to cater cloud services to small, medium and big enterprises in India.
Under the agreement, Airtel Cloud will offer customers a range of AWS services, including Windows on AWS, SAP on AWS, VMware Cloud on AWS, etc, by leveraging AWS's innovation and transformation services.
Following the news, Bharti Airtel share price opened at Rs 550.20 and later touched an intraday high of Rs 560.30, rising 2.1% against the earlier close of Rs 560.3 on BSE. The stock also touched an intraday low of Rs 546.60.
Bharti Airtel share stands higher than 5, 100 and 200-day moving averages but lower than 20 and 50-day moving averages. Bharti Airtel share has risen 22% since the beginning of the year.
Market cap of Bharti Airtel, which has over 2,500 large enterprises as its customers, rose to Rs 3.05 lakh crore as of today's session. The stock price has gained 2.24% in the last 2 days.
"Airtel customers will benefit from integrated sales, consulting, and support approach from both the companies, and improved security, scalability, and cloud management capabilities," the company said in a statement.
As per the agreement, Airtel Cloud will build an AWS Cloud Practice, which will be supported by AWS Professional Services.
"This collaboration brings AWS, the world's leading cloud platform, together with Airtel's deep reach and proven expertise in handling network, data centres, security, and cloud as an integrated solution," said Harmeen Mehta, CIO & Head - Cloud and Security Business, Bharti Airtel.
Bharti Airtel and Amazon Web Services signed a pact in August last year to tap into the demand for public cloud services, especially from small and medium enterprises.
Shares of Bharti Airtel closed 1.95% higher at Rs 559.50 on BSE.