Microsoft is fighting to gain the market share against Amazon Web Services. Microsoft publicizes a big deal with AT&T that encompasses both Azure cloud infrastructure services and Office 365. The AT&T Cloud deal is a major win for Microsoft. This deal with AT&T means Microsoft technology will be deployed alongside AT&T’s upcoming 5G network. The AT&T Cloud deal is appraised to be worth $2 billion.
The AT&T Cloud deal will also benefit AT&T. The telecom company will benefit from Microsoft’s Azure cloud service for its computing demands. It can also make use of Office 365 software for its 268,000 employees.
Why the AT&T Cloud deal is important for Microsoft
Despite the hottest growth engine losing its spark, Microsoft has been flexing its cloud muscles. The cloud is the main engine of growth for the software giant and has become Microsoft’s largest business. In the cloud computing business, Azure’s chief contender is Amazon Web Services, which dominates the industry with a 32.8% market share; Microsoft has a share of 14.6%, while Google has 9.9%, according to research firm Canalys.
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AT&T is a modern media company whose mission is to inspire human progress through the power of communication and entertainment. AT&T brings together premium video content, a large base of direct-to-consumer relationships, high-speed networks optimized for video and advertising technology to lead the next revolution in technology, media, and telecommunications. The company comprises of four distinct business units; namely, AT&T Communications, Warner Media, AT&T Latin America and Xandr.
Microsoft CEO Satya Nadella spoke of the deal in imposing terms around the transformation and innovation.
“Together, we will apply the power of Azure and Microsoft 365 to transform the way AT&T’s workforce collaborates and to shape the future of media and communications for people everywhere,” he said in a statement in the blog post announcement. By combining Azure with AT&T’s 5G network, the two companies can help customers create new kinds of applications, voice, collaboration, and conferencing tools.