Microsoft, AT&T ink cloud deal worth more than US$2 billion

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Microsoft Corp and AT&T Inc on Wednesday said they reached a deal under which the telecommunications firm will tap Microsoft's Azure cloud ...

REUTERS: Microsoft Corp and AT&T Inc on Wednesday said they reached a deal under which the telecommunications firm will tap Microsoft's Azure cloud service for its computing needs and provide Office 365 software to much of its 268,000-strong workforce.

AT&T will continue to operate its own core networking operations for cell phones and other devices. But John Donovan, chief executive of AT&T Communications, told Reuters the deal is a fundamental shift for the telecommunications provider to become"public cloud first," meaning that it will predominately rely on data centers built by others to power the rest of its business.

For Microsoft's part, the company will also gain a partner to sell its edge computing services, which will help software developers write programs for situations like factories whose machines are fitted with sensors to collect data or retail stores fitted with sensors and cameras to help keep inventories up to date.

 

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