Amazon and Microsoft have quietly done something that enterprise IT teams have been asking for: they made it genuinely easy to connect workloads running across AWS and Azure.
The two companies have launched Azure Multicloud Interconnect for AWS, a direct private link between the two largest cloud platforms. AWS stock fell 2.50% and Microsoft dropped 1.22% on the day of the announcement.
The new service is part of AWS Interconnect – multicloud, which AWS first unveiled at re:Invent 2025. Azure is now the third major cloud provider on the platform, joining Google Cloud and Oracle Cloud Infrastructure.
Setting up the connection takes minutes through a standard point-and-click workflow in either the AWS Management Console or the Azure portal. Previously, businesses had to deal with physical infrastructure, multiple vendors, and provisioning timelines that stretched weeks or months.
$AMZN and $MSFT just launched direct private connectivity between AWS and Azure, letting customers link workloads in minutes instead of weeks through dedicated encrypted connections.
The service is live in preview across four regions and gives enterprises an easier way to run… pic.twitter.com/tvuzqYiZ72
— Sam Badawi (@Sam_Badawi) August 31, 2026
Security is baked in from the start. The system uses MACsec encryption between edge routers, protecting data from the moment it leaves one cloud and arrives at the other. AWS says any provider that cannot meet its security and availability bar does not get connected.
The architecture uses four independent logical paths across physically separate facilities. If one router goes down, or even if an entire site fails, traffic keeps moving. AWS calls this quad-redundant design, and it targets four-nines availability.
Both companies share a common open API specification that handles the underlying network complexity. Customers get a single management layer rather than separate tooling for each cloud environment.
AWS VP of Network Services Robert Kennedy said the old ways of connecting AWS and Azure workloads were “clunky.” The goal here was mutual commitment to a higher standard on both sides.
Microsoft VP of Azure Networking Narayan Annamalai framed the partnership around flexibility for customers building AI solutions and data platforms across multiple environments.
Companies often end up on multiple clouds not by design but through acquisitions, regulatory requirements, or customer demands. ISVs frequently need to deploy wherever their clients already operate.
Until now, stitching those environments together meant public internet routing or complex third-party networking arrangements. Neither option was clean.
The open API specification also means other cloud providers can adopt the same standard without requiring customers to rebuild their architecture.
AWS and Microsoft plan to expand regional coverage and increase bandwidth options. The long-term goal, according to AWS, is a world where customers can build a global network and connect to any cloud with a few clicks.
Wall Street remains bullish on both names. Amazon holds a Strong Buy consensus rating based on 39 Buy recommendations, with an average price target of $334.05, implying 28.6% upside. Microsoft carries a Strong Buy rating from 33 analysts, with a price target of $564.49, reflecting 11.28% upside from current levels.
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