Cloud first as Asda and Microsoft lay claim to one of UK's largest ever retail technology deals

Asda is expanding its partnership with Microsoft in what is pitched as one of the UK’s biggest retail tech deals to date, involving the use of Azure and Copilot.

Four years ago, Asda began separating from its former owner, Walmart. Project Future, as the programme became known, aimed to establish a best-of-breed “digital core” of specialist systems based on a cloud first strategy.

“We wanted world class partners to look after the digital core, so we could focus on what we’re really good at: retailing and using data to deliver propositions for customers,” says Matt Kelleher, Asda’s Chief Digital Officer.

“When you’re cloud first, you can flex, you can optimise, and you can trust your partners to customise, update, maintain and protect the systems. That’s a real advantage.”

“We’ve built an ecosystem of systems that helps us develop, manage, tune and change our propositions for customers. That might be products, our price position, our price architectures, our range assortments, or what we’re learning about customer trends.”

The Microsoft deal, which builds on a commercial relationship that began in 2022, sees Azure expand its role as Asda’s primary cloud platform, underpinning everything from data and analytics to security and integration.

Data analytics from Azure Databricks and Microsoft Fabric helps turn data from across the core platforms into the prices and deals it presents to customers, while Microsoft Defender provides security for the whole digital core.

Most of Asda’s selected strategic platforms – from planning to service management – are built by vendors that also operate on Azure. Azure Integration Services acts as the stitching that brings them together.

“We needed to leverage Microsoft’s integration layer, Azure Integration Services, to make sure that all of those core providers spoke to each other,” says Kelleher. “So much data has to flow to make availability feel simple for customers. Why would we not deepen our partnership to accelerate our growth, given we have all of those component parts, not only in our business, but within our partners?”

Microsoft 365 Copilot is helping colleagues - from executives to store teams - simplify tasks and reclaim time.

“Copilot is with me from the moment I come into the office,” Kelleher comments. “I can ask ‘what have I missed?’, ‘what is it that I need to know?’, ‘what do I need to prioritise?’”

“It’s personal productivity transformation. But it needs senior leaders to lead by example – to use these tools ourselves - and say to the business that this is how we work now.”

This adoption is meeting momentum from younger, AI savvy colleagues.

“We’ve got Gen Z coming into the business who are already fluent with generative AI,” says Kelleher. “When their curiosity meets leadership role modelling, that’s when the culture really starts to shift and the magic starts to happen.”

Darren Hardman, CEO, Microsoft UK & Ireland, says: “This collaboration with Asda exemplifies how cloud and AI technologies can transform retail at scale. By integrating Microsoft Azure’s advanced capabilities, Asda is modernising its operations, empowering its colleagues, and enhancing customer experiences. We’re proud to support Asda in its journey to become an agile, cloud first, AI driven business.”

2025 RTIH INNOVATION AWARDS

Cloud first strategies will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now closed for entries with our finalists and shortlists being announced this week, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.