AT&T Inc. (NYSE:T) has announced that it is teaming up with Amazon.com, Inc. (NASDAQ:AMZN) to offer cloud computing services to its clients.
The partnership will allow AT&T to leverage Amazon Web Services (AWS) so that it can in turn offer services related to the Internet of Things, analytics and security. The terms of the deal have not been disclosed but the idea is to help Verizon’s customers to migrate to cloud technology with regards to the various disciplines involved. The partnership will integrate AT&T’s NetBond private network into the cloud services from Amazon. This will allow customers to access secure information storage as well as information retrieval.
The partnership with Amazon also resembles similar deals that Verizon has already secured with other firms including International Business Machines Corp. (NYSE:IBM), Box Inc (NYSE:BOX) and Microsoft Corporation (NASDAQ:MSFT). The deal will also divert more focus into connected smart devices in the IoT industry. Devices and sensors connected to the AT&T network will be connected to Amazon’s cloud network. AT&T claims that it has about 29 million devices connected to its network.
“For many enterprises, the cloud’s potential can be equal parts tantalizing and challenging. Emerging technology trends and fluctuating needs mean that a company’s plans are dynamic, and can quickly change,” stated Mo Katibeh, AT&T’s senior VP for AT&T Business Solutions and Advanced Solutions.
The company believes that the partnership with Amazon will help to streamline the shift towards cloud technology. The deal is advantageous to AT&T because it will grant it access to Amazon’s already established and leading cloud network. The company’s deal with Microsoft allows it access to the Azure cloud service which also offers a boost towards cloud technology.
“Advanced connectivity and network solutions are critical to enabling our customers to get the most out of our services,” stated Terry Wise, an executive at Amazon.
AT&T stock closed the latest trading session at $39.11 down by $0.05 or 0.13% compared to the stock price in the previous close.