The utility industries used to have a reputation for technological conservatism. They rarely indulged in the exploration of new technology. In previous decades, changes were primarily limited to maintenance of existing infrastructures. A lack of innovation led to stagnation in these industries.
This has changed in recent years. A number of utility companies have started experimenting with cloud solutions, artificial intelligence and other cutting-edge technology.
AT&T is one of the utility companies that has started making real headway with cloud technology. The telecommunications giant has forged partnerships with IBM, Microsoft and other technology leaders to handle new cloud processes. An estimated 96% of businesses use the cloud, so any breakthroughs in enterprise cloud technology will carry benefits that transcend industries.
These new contracts could set the stage for unprecedented breakthroughs in cloud technology, which will have a tremendous impact on the phone industry for years to come. The proposed solutions are currently focused on aiding enterprise clients, but they will probably be expanded to the consumer segment shortly thereafter.
AT&T and IBM form cloud partnership to serve enterprise customers
AT&T has been rather resilient at retaining its residential market share. However, it faces a much fiercer fight over its enterprise client base.
The telecom giant built a partnership with IBM to better serve these companies. IBM is giving AT&T access to it cloud management system to amass large amounts of data for clients across various industries. This cloud-based system will connect AT&T enterprise clients to IoT networks that rival anything other telecom providers have deployed so far. One of the biggest breakthroughs will be in the area of manufacturing automation.
IBM is going to continue offering more advanced cloud solutions to AT&T and other telecom partners as it makes new breakthroughs in cloud technology. The company recently acquired Red Hat for $34 million, which gives it access to a trove of new hybrid cloud solutions.
Business Insider reports that this change will bring significant benefits to the industry:
These configurations are key parts of many businesses’ strategies: 84% of enterprises (with 1,000 or more employees) surveyed by Flexera plan to follow a multi-cloud strategy, with 58% pursuing hybrid cloud strategies, whereas just 10% plan to rely on a single public cloud and only 3% a single private cloud.
Microsoft forms cloud partnership with AT&T
IBM is not the only company that is offering innovative cloud solutions to AT&T. Microsoft is also committed to collaborating with the telecom company.
AT&T signed a contract agreeing to use the Microsoft 365 system to revamp its cloud management platform. AT&T announced that the new deal will focus on improving security and productivity.
The contract will last for several years. AT&T agreed to pay Microsoft $2 billion to retain access to the Microsoft 365 platform.
Microsoft CEO Satya Nadella said that the collaboration between the two companies will be highly mutually beneficial.
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, said Nadella. 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.
What do these deals mean for the telecom industry?
AT&T won’t be the only company to invest in these types of cloud services. The question is what impact new cloud Partnerships will bring to the industry. The exact benefits are difficult to predict with certainty. However, it is clear that cloud solutions offered by IBM, Microsoft and other cloud technology leaders well left productivity, strength and security end likely trim operating costs.
