- AT&T and Microsoft recently announced it made a strategic alliance involving cloud computing, AI, and 5G in a deal reportedly valued at around $2 billion
AT&T and Microsoft recently announced a strategic alliance involving cloud computing, AI, and 5G. According to CNBC’s sources, the multiyear deal is valued at around $2 billion.
As part of the deal, Microsoft will be the preferred cloud provider for non-network applications as part of AT&T’s broader public cloud-first strategy and will support AT&T as it consolidates its data center infrastructure and operations. And AT&T will become a “public cloud-first” company by migrating most non-network workloads to the public cloud by 2024. The initiative will also allow AT&T to focus on core network capabilities, accelerate innovation, and empower its workforce while optimizing costs.
And AT&T will provide much of its workforce with the Microsoft 365 cloud-based productivity and collaboration tools along with migrating its non-network infrastructure applications to the Microsoft Azure cloud platform.
“AT&T is at the forefront of defining how advances in technology, including 5G and edge computing, will transform every aspect of work and life,” said Microsoft CEO Satya Nadella. “The world’s leading companies run on our cloud, and we are delighted that AT&T chose Microsoft to accelerate its innovation. Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T’s workforce collaborates and to shape the future of media and communications for people everywhere.”
Plus AT&T and Microsoft will together help enable a future of ubiquitous computing through edge technologies and 5G. AT&T is expecting to have nationwide 5G by the first half of 2020. And Microsoft will tap into the innovation AT&T is offering on its 5G network, including to design, test, and build edge-computing capabilities. Using edge computing and a lower-latency 5G connection enabled through AT&T’s geographically dispersed network infrastructure, devices are able to process data closer to where decisions are made.
“AT&T and Microsoft are among the most committed companies to fostering technology that serves people,” added AT&T Communications CEO John Donovan. “By working together on common efforts around 5G, the cloud, and AI, we will accelerate the speed of innovation and impact for our customers and our communities.”
And the companies already have joint enterprise solutions for networking, IoT, and blockchain in market. Additional services are expected to be announced later in 2019. For example, Microsoft and AT&T also recently worked together to test an edge computing-based tracking and detection system for drones.
AT&T and Microsoft are also working together on technology-enabled approaches and solutions aimed at social good. Both companies are focusing on addressing sustainability, accessibility, and community challenges like homelessness through Microsoft’s affordable housing initiative and the AT&T Believes campaign.
