Chevron In Seven-Year Cloud Computing Contract With Microsoft

Microsoft has been picked by Chevron as the oil giant’s preferred cloud provider. In a deal that will last for seven years, Chevron will transfer the development of new apps to Azure. Chevron will also gradually transfer legacy applications and data that are already in operation. Additionally the two firms will embed their technical staff together besides sharing research and development.

Though terms of the deal were not disclosed it is likely to be worth millions of dollars given its size and in comparison to other recent contracts. Just recently Microsoft participated in a deal with the U.S. military worth approximately $1 billion.

“When you see a leader in energy picking our platform, it’s very significant. The fact that it’s a multi-year partnership really emphasizes that Microsoft is committing to work with its most important customers for the long haul,” said Microsoft’s global infrastructure head, Tom Keane.

Vast amounts of data

Chevron’s production and consumption of data is huge given the fact that it is a global corporation. A plant in Kazakhstan will for instance be streaming data from over one million sensors after it becomes operational in a few years’ time. According to Bill Braun, the chief information officer of Chevron, about 100TB or data is produced during one seismic imaging operation.

Prior to picking Microsoft Azure, Chevron had experimented with other service providers. The oil giant selected Azure owing to its geographic coverage as well as because it possessed a track record in the enterprise market. Additionally Microsoft offered Chevron research and development opportunities.

Staying in Bangladesh

Chevron’s selection of Microsoft Azure as the preferred cloud provider comes in the wake of the U.S. oil giant rescinding a decision to dispose of three subsidiaries located in Bangladesh with intentions of exiting the country. Earlier in the year Chevron had indicated that it would sell its subsidiaries to Himalaya Energy Co, a Chinese-based company. The subsidiaries that were to be sold operate three gas facilities which constitute about 58% of the total production of gas in Bangladesh.

According to the external affairs advisor for Chevron in Asia, Cameron Van Ast, the U.S. oil giant will retain its subsidiaries and will also continue the partnership it has with the Bangladeshi government and Petrobangla with a view to offering affordable and reliable energy to Bangladeshis. Besides rescinding the decision to exit Bangladesh, Chevron will also invest approximately $400 million in the largest gas field in the Asian nation which is located in Bibiyana.

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