AT&T signs monster $2 billion cloud deal with Microsoft

AT&T cloud deal

Notably, AWS spearheads the market of cloud infrastructure by a significant margin. However, Microsoft is not badly off as it has secured a solid second position since it is the only other firm with “double-digit share.” Microsoft has just announced a massive deal with AT&T that constitutes both Office 365 and Azure cloud infrastructure services.

It is essential to note that this pact will enable AT&T and Microsoft to engage in collaborative efforts on edge computing.  As a result, Microsoft technology will be utilized together with AT&T impending 5G network for applications that require very minimal delays in transmitting data back and forth, for instance, control systems for air traffic related to drones.

Satya Nadella, Microsoft’s Chief Executive, told Reuters that the company’s overall heritage of being a developer tools firm, coupled with the network competencies of AT&T, is “unique”. By and large, she talked about the arrangement using terminology that revolves around innovation and transformation.

A trusted source indicates that the multiyear agreement is worth over $2 billion. The person requested not to be quoted due to the fact that the terms are private. AT&T characterizes both a highly reputable brand and a sturdy buyer. Moreover, this company has significant data storage as well as computing needs for its over 250,000 employees. Therefore, the agreement will be beneficial for Microsoft, which is pursuing Amazon Web Services in the cloud infrastructure domain.

The global range of the deal will facilitate exceptional solutions for the corporations’ mutual clients. Furthermore, the companies will lead to market integrated solutions for the industry, including areas of conferencing, networking, cybersecurity, voice, collaboration, IoT, and public safety.


Besides AT&T’s internal application of Microsoft technology, the corporations are working hand in hand on generating tools for artificial intelligence, and plan to reveal surplus services later in this year.

In addition to their cooperation in technology, the two firms will team up on technology-enabled tactics and solutions intended for social benefit. Both companies have focused on addressing accessibility, sustainability, and community concerns such as homelessness. They aim is to support one another to tackle urgent social requirements, including AT&T Believes campaign and Microsoft’s affordable housing project.

While the agreement to bring AT&T and Office 365’s 250,000 plus employees is a major win, that portion of the pact is incorporated in the SaaS umbrella. Therefore, it will not aid with Microsoft market share in cloud infrastructure. Nonetheless, despite how you can view it, it is still a big deal.