IBM and AT&T Announce Multibillion-Dollar Deal

The new agreement builds on the two multinational giants’ 20-year relationship.


Two of the largest multinational companies in technology and telecommunications announced a deal that could be worth billions of dollars according to CNBC. Information technology giant IBM confirmed on Tuesday that it’s signed a major cloud deal with AT&T, the global leader in telecommunications. The agreement will allow AT&T to host the company’s business applications on the IBM Cloud platform. The companies have already forged a previous 20-year relationship.

Senior Vice President of IBM’s Cloud and Cognitive Software, Arvind Krishna, said: “Building on IBM’s 20-year relationship with AT&T, today’s agreement is another major step forward in delivering flexibility to AT&T Business so it can provide IBM and its customers with innovative services at a faster pace than ever before. We are proud to collaborate with AT&T Business, provide the scale and performance of our global footprint of cloud data centers, and deliver a common environment on which they can build once and deploy in any one of the appropriate footprints to be faster and more agile.”

While IBM confirmed the deal, it hasn’t specifically named a dollar value. A spokesperson has, however, said the deal will last for several years.

IBM closed on its acquisition of the open-source software company, Red Hat, last week. The $34 billion deal was IBM’s largest at the time. The new agreement with AT&T will allow AT&T to utilize Red Hat’s platform to manage applications and workloads for its enterprise customers. 

IBM will also develop AT&T’s operational applications and co-manage their communications IT infrastructure across the cloud. 

IBM and AT&T also plan to develop edge computing platforms that use 5G networks. Enterprise clients will be able to use the 5G network speed, as well as devices and sensors which are internet-connected. In the future, companies will be able to transmit data at rapid speeds through various clouds more securely and reliably, while harnessing improvements in bandwidth. The result will make for better user experiences for its consumers across many industries. Migrations to the IBM Cloud network will also be enabled. AT&T Business will also become IBM’s main provider of software networking. 

AT&T Business CEO, Thaddeus Arroyo, said “In AT&T Business, we’re constantly evolving to better serve business customers around the globe by securely connecting them to the digital capabilities they need. This includes optimizing our core operations and modernizing our internal business application to accelerate innovation. Through our collaboration with IBM, we’re adopting open, flexible, cloud technologies, that will ultimately help accelerate our business leadership.”


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