Ericsson and Intel to lift telecom firms to the cloud

Ericsson and Intel have agreed to help network operator customers build their own data centres for the cloud, giving them move competitiveness against cloud-based giants like Google, Facebook or Amazon.

The information was unveiled during the Mobile World Congress in Barcelona.

Ericsson CEO Hans Vestberg said the service will be equal to the one offered by big cloud providers:

"We will build data centre equipment which will actually have the same performance as many of the big cloud providers are doing for themselves," said Hans Vestberg, at a news conference at the Mobile World Congress telecoms trade show in Barcelona on Monday.

Ericsson, the world's leading maker of mobile network equipment, said it will help its global base of major telecoms companies to shift to cloud computing using Intel datacentre designs to compete more actively with Web rivals.

No financial terms of the partnership were disclosed.

Over the past decade Web-based services like Google, Facebook, Amazon and Microsoft have stopped buying finished computers, storage devices and network components and instead developed their own systems in-house to create massive, low-cost datacentres in the cloud to serve billions of users, Reuters reports.

The Swedish company's plan is to focus initially on equipping big telecom operators rather than competing for new corporate customers in other industries, its CEO said.

"The difference is that we are going to provide it to the market," Vestberg said. "This is predominately to see that we give a competitive edge for our customers, the carriers."

The move builds on a number of smaller cloud software company acquisitions made by Ericsson over the past year.