Some ASX tech shares and related businesses are having a good day on the ASX share market as news broke of a major deal with Microsoft Corp (NASDAQ: MSFT).
At the time of writing, the Nextdc Ltd (ASX: NXT) share price is up more than 1.5%, the Data#3 Limited (ASX: DTL) share price is up 0.8%, the Dicker Data Ltd (ASX: DDR) share price is up 0.4% and the TechnologyOne Ltd (ASX: TNE) share price is up 0.3%.
The S&P/ASX 200 Index (ASX: XJO) is slightly down at the time of writing.
Microsoft deal
As reported by various media outlets, including the Australian Financial Review, Australian Prime Minister Anthony Albanese has agreed to a $5 billion deal with Microsoft to improve Australian cybersecurity, cloud computing and artificial intelligence capabilities.
Microsoft is going to invest $5 billion into its Australian operations, with one of the benefits being a 250% boost over two years to the company's computing capacity.
The US tech giant will establish the Data Centre Academy, in partnership with TAFE NSW, starting from 2024 to train 200 people to improve their applied data skills.
PM Albanese said:
This is a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy.
A priority for my government is to ensure all Australians benefit from economic growth. This means that we need to provide the skills to enable Australians to succeed in the jobs of the future.
A strong economy requires protection from cyber threats. I welcome Microsoft's collaboration with the Australian Signals Directorate to enhance cybersecurity for households and business.
Microsoft is also going to work on improving Australia's ability to withstand cyber threats to individuals, businesses and governments.
The AFR also reported that part of the agreement "will also bolster the national threat intelligence-sharing capabilities, focusing on detecting, analysing and defending against sophisticated nation-state cyber threats launched by countries such as China and Russia."
ASX tech shares to benefit?
While no companies were specifically mentioned in the news, it's understandable if some investors are guessing that ASX tech shares can benefit from increasing focus on Australia becoming more technological.
More demand for data centres could help Nextdc. Dicker Data is involved in a variety of technology and cyber services. TechnologyOne may see more demand if more organisations want to move to the cloud or upgrade their service.
There's a phrase that says a rising tide lifts all boats. More spending in the technology sector could indirectly, or even directly, help various ASX tech shares.
