The seven-year partnership brings Microsoft’s technology into Chevron’s existing digital transformation strategy. The company will use Microsoft’s Azure cloud platform as the bedrock for its digital services, data analytics and automated operations centres.
The relationship is intended to be a two-way affair that will encourage “joint innovation.” This includes employee cross-training between the firms and collaboration on technical projects. Chevron will use Microsoft’s existing services to make the most of its data lakes. In return, Microsoft will be able to develop new products that solve Chevron’s specific business challenges.
Chevron embraces DX
Chevron’s already operating as an increasingly digital business. It has connected its oil wells, ships and cables to the web, allowing real-time monitoring of the company’s worldwide operations.
An individual fiber optic cable inside an oil well can generate up to 1 terabyte of data a day, providing a continual stream of readouts on temperature and pressure. The adoption of Azure will allow Chevron to more efficiently process this data, ensuring the insights within don’t go unnoticed.
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The strategic partnership will give Chevron the headroom to deploy new technologies and generate yet more data. The company said it’s pursuing improved operating agility, increased safety and greater revenue as the long-term aims of its digital strategy.
“We embrace every opportunity that streamlines our workflows, gives us insights into more efficient operations and helps us compete,” said Joe Geagea, Chevron’s executive vice president of Technology, Projects and Services. “We already have a head start in digitizing our oilfields, but we want to accelerate our deployment of new technologies that position us to increase our revenues, lower our costs and improve the safety and reliability of our operations.”
Another big DX move for Microsoft
The multi-year collaboration is another digital transformation win for Microsoft. The company’s increasingly focused on its enterprise customers and is rapidly expanding its cloud services around IoT and automation. Microsoft said Azure will let Chevron “become a truly digital business,” noting that its cloud network has server nodes in more regions than any other provider.
