Microsoft Wins Big In AT&T Cloud Deal Valued At $2B

Microsoft CEO Satya Nadella.  (AP Picture/Elaine Thompson)


The battle for cloud computing dominance is at its peak and the leaders are beginning to present their faces. In terms of IaaS, Amazon AWS has a giant lead, adopted by Microsoft Azure, IBM Cloud, Alibaba, and Google Cloud Platform. Should you have been questioning the place Oracle was, Gartner doesn’t place the corporate in its Prime 10 in income however does add it to its “Magic Quadrant”. PaaS and SaaS are necessary, after all, and in some methods is the larger greenback alternative.

Amongst clients, there’s additionally an incredible quantity of curiosity round hybrid cloud and multi-cloud. While you cross-section that in opposition to the potential enterprise alternatives of 5G, IoT, and AI, issues get very fascinating. I needed to dive into the cloud bulletins AT&T and Microsoft made this week, focusing extra on what AT&T desires from Microsoft than what it’s offering to the tech big.

A brand new AT&T 

First, let’s check out some background on AT&T. Many could not understand this, however AT&T is not only the telephone firm anymore. The corporate’s Q1 earnings this 12 months confirmed plenty of notable enterprise breakouts. Its Mobility sector (which incorporates smartphones, wearables, tablets, and client wi-fi providers) is now an $18 billion-dollar enterprise. Its Leisure Group, together with DirecTV, DirecTV Now, and its AT&T Fiber broadband service, now totals $11 billion. In the meantime, Enterprise Wireline (enterprise tools and providers) is as much as $6 billion, its Latin America sector is as much as $2 billion, WarnerMedia is as much as $eight billion, and Xander, an promoting firm beneath its umbrella, is as much as $.5 billion. This isn’t your grandfather’s AT&T.

A giant win for Microsoft 

That is all related context to the telco big’s announcement at present of a multiyear, wide-reaching partnership with Microsoft on cloud, AI, and 5G. AT&T is within the midst of what it calls a “public cloud-first” technique, with the objective of shifting nearly all of its non-network workloads onto the general public cloud by the 12 months 2024. Of word, AT&T gave its enterprise community enterprise to IBM. Whereas AT&T will retain accountability for its personal core networking operations for cell telephones and different units, this partnership offers AT&T a touchdown pad for these non-network workloads: Microsoft Azure. Moreover, AT&T’s workforce (of roughly 268,000) will now have entry to Microsoft 365’s cloud-based productiveness and collaboration instruments.

Microsoft says, in flip, will be capable of leverage the innovation enabled by AT&T’s 5G community. This might be significantly helpful for Microsoft because it designs, builds, and assessments edge-computing options that profit from the excessive pace and low latency of 5G. I’ve all the time needed to see HoloLens help 5G because it may supply Distant Rendering without having WiFi. Along with the clever edge, the businesses say they may collaborate on built-in options in networking, IoT, public security, cybersecurity. Microsoft has one of many few end-to-end IoT options spanning from the deep edge silicon to the non-public and public Azure and Azure Stack cloud. The partnership additionally offers Microsoft a brand new accomplice to promote its edge computing providers. Not surprisingly, they will even work collectively on voice, collaboration, and conferencing instruments. Groups is an unbelievable platform for this and presently leads the enterprise market after solely two years.

It was tougher than I assumed to match and distinction the AT&T-Microsoft and AT&T-IBM offers. It seems IBM has the community and enterprise division facet and Microsoft obtained every thing else. The press launch positioning was fascinating, too. The AT&T-Microsoft press launch cited each CEOs, Microsoft’s Nadella and AT&T’s Donovan, IBM’s didn’t.

Wrapping up 

Purportedly price over $2 billion, this deal marks an enormous win for Microsoft Azure in its effort to extend its cloud enterprise and the partnership appears to be a wise strategic one for each events. Each have loads to realize from and share with one another, and I anticipate it would bear some good particulars on AI, IoT, and 5G-enabled options. Microsoft will assist AT&T understand its “public cloud-first” imaginative and prescient, and in return, it receives a major enhance within the public cloud struggle for dominance. AT&T’s massive workforce good points the advantages of Microsoft 365, one of the vital highly effective cloud-based productiveness instruments obtainable at present. It’s a stable win for Microsoft. 

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