On Tuesday, Walmart WMT revealed that it has entered a five-year deal with Microsoft MSFT which will allow the retail giant to use the tech firm's cloud solutions, such as Azure and 365. The agreement will also see the two companies take part in new projects centered on machine learning, artificial, intelligence, and data platforms. For Walmart, the deal is an obvious move to fight back against Amazon AMZN, the company's biggest competition in the retail space. The partnership will significantly bolster Walmart's online operations as the retailer embarks on a critical digital transformation to combat Amazon's e-commerce success. Use of Microsoft's cloud infrastructure will also make shopping faster for Walmart's customers and help to streamline the retail giant's supply chain through data integration. Significance for Microsoft While the partnership is a major breakthrough for Walmart for obvious reasons, it is equally essential for Microsoft and the tech company's growth moving forward.