According to the latest sources, Microsoft corp. has been enlisted by AT&T Inc. to run the company’s next-generation mobile network. This news comes amidst the race among network providers to get their hands on the cloud computing deals, which will use the latest 5G network to boost their services.
As we know, Microsoft is one of the biggest players in cloud computing with its Azure platform. With this new deal, Microsoft will acquire AT&T’s Network Cloud technology and staff to eventually handle all of the wireless carrier’s 5G traffic. Even the core software that connects customers to the internet, will also be based on the tech and staff provided by AT&T.
The deal is a follow to the 5G partnership formed by the two companies in 2019 and is a big win for Microsoft’s Azure division. Since the branch is trying to sell more cloud services worldwide and establish dominance over its competitor Amazon.
The deal is big for both because, AT&T is the third-largest wireless provider, and this deal will help the company to reduce operating costs. Since AT&T will continue to run its network using Microsoft for the 5G cloud operations.
Dish Network Corp. has also made a similar deal in April to have Amazon.com Inc. run its core 5G network. However, many believe that Microsoft still has options open to explore. “This deal is not exclusive, so I fully expect Azure will try to assert itself as the telecom cloud provider for many carriers around the world.”
AT&T will soon be spinning off its DirecTV satellite business and its WarnerMedia assets solely to focus on its wireless and broadband communications services.
“AT&T developed its own 5G cloud, but it was subscale. Logically, they would outsource it.”