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Microsoft wins huge AT&T Azure cloud contract

(Image credit: Image Credit: StockStudio / Shutterstock)

Microsoft has announced that it signed a significant deal with telecommunications giant AT&T to provide both its Azure cloud platform, and migrate over to Office 365, the company’s cloud productivity suite.

The deal will be valid for a couple of years, and is allegedly worth north of $2 billion, CNBC claims, citing anonymous sources familiar with the matter.

AT&T has more than 250,00 employees that will be taking advantage of Microsoft’s cloud solutions.

It was added that the two companies would also be teaming up to build AI tools for 5G solutions. Additional services should be announced before the year ends.

“With things like 5G coming together, we absolutely think the combination of AT&T and Microsoft can really go fulfil the demand which is going to be very broad-based across what is commercially led innovation,” Microsoft CEO Satya Nadella told CNBC in an interview.

“This next phase of, I’ll call it the cloud and edge and AI era, will be led by what I would broadly call more production versus just consumption.”

The deal does not mean that AT&T can’t use any other cloud provider, though. The company has a deal with IBM, revolved around cloud migration. AT&T says it wants to become a public cloud first” company, as it moves data to Azure and employees to cloud communications solutions.